Best Oil Stock ETFs as Oil Prices Rise Again

Oil prices surged again today despite the promise of more supply on the market after President Trump lifted sanctions temporarily on Russian barrels.

Brent crude was up 1.69% to $102.30 even though the U.S. allowed Russian oil stranded at sea to be shipped globally until April 11. Officials expect the move to add hundreds of millions of barrels to the market, which they had hoped would push prices back below $100.

Sanctions on Russia have been imposed because of its invasion of Ukraine, but it is the prospect of a war in the Middle East which is scaring oil investors. News that the U.S. could send Marines to Iran as the conflict continues helped oil higher today.

Emril Jamil, senior analyst at LSEG, said: “ICE Brent futures have already breached $100 per barrel and are still supported today, despite moves to calm the markets with the Russian oil waiver and the unprecedented release of emergency stockpiles. The market sees this as a short-term solution that does not address the crux of the supply disruption. The crude intermonth spreads for future months indicate an unresolved and continued tightness in supply.”

Let’s look at two ETFs from our Best Oil, Gas and Consumable Fuels ETFs list, which are likely to continue benefiting.

MicroSectors Energy 3X Leveraged ETNs (WTIU)

The MicroSectors Energy 3X Leveraged ETNs, trading under the ticker WTIU, offer investors a powerful tool to maximize their exposure to the dynamic energy sector, particularly within the Oil, Gas & Consumable Fuels niche. This exchange-traded note (ETN) is designed to deliver three times the daily performance of the Solactive MicroSectors Energy Index.

WTIU is a leveraged product, amplifying both potential returns and risks, and is best suited for sophisticated investors looking to capitalize on short-term movements in the energy sector. By focusing on major players in oil and gas, WTIU allows investors to tap into the heartbeat of global energy dynamics.

It has $24.58 million in Assets Under Management and is up 91% over the last three months – see below:

ProShares Ultra Oil & Gas (DIG)

It is a dynamic exchange-traded fund designed for investors seeking amplified exposure to the energy sector, with a particular emphasis on oil, gas, and consumable fuels. This ETF aims to deliver twice the daily performance of the Dow Jones U.S. Oil & Gas Index, making it an intriguing option for those who are bullish on the energy market and looking to capitalize on short-term price movements. Operating within the sector-focused category, ProShares Ultra Oil & Gas leverages a unique strategy to enhance potential returns by utilizing financial instruments such as derivatives to achieve its leveraged objective.

It has $95.67 million in Assets under Management and is up 59% over the last three months.

You can access a whole range of ETFs via the TipRanks Compare ETFs page.