DBO - Why Oil's Rally Might Continue
Right now, the oil industry is facing a significant degree of volatility, with fears from investors and market watchers alike centering around the prospect of weakening demand and a continued increase in the US output. In its latest Short-Term Energy Outlook report, the EIA (Energy Information Administration) revealed to investors that some of these concerns, particularly those focused on weakening demand, are not irrational. Recent data suggest that supply growth should be stronger this year than previously anticipated and that demand, likely affected by the Trump Administration’s trade war with China, will be weaker than