5 Country ETFs To Benefit From Crude Oil's Jump

Looks like the oil price rout will take a breather for a while. After an output cut deal signed on November 30, non-OPEC members too decided over the weekend to join to the output cut move in order to tighten supplies and put an end to a two-and-half year long oil price upheaval.

This has given a boost to both WTI and Brent futures by about 5% and poised oil-related investments for gains in the coming sessions.

As per Bloomberg, the OPEC and non-OPEC pact will likely control over 60% of the world’s oil output. However, the move does not include major producers like the U.S., China, Canada, Norway and Brazil.

Already crude oil price was headed toward $55-level at the time of writing. In fact, as per Bernstein, “assuming reasonable compliance levels, these cuts will be enough to push the market into deficit” and lead to $60/bbl Brent crude price in the near term.

If this $50–$55 becomes a reality and stays for long, it will definitely put some country stocks and ETFs in focus. These are the key oil producing and exporting countries with revenues earned from oil accounting for a major share of their GDP. These country ETFs bled when oil slid but could be on high gear if oil prices stage a sustained recovery.

As we all know, ETFs offer a great opportunity while it comes to playing a particular nation. In light of this, we have highlighted five country ETFs that could shoot up in the days ahead should oil price cross the $50 mark on its way above. 

Market Vectors Russia ETF ((RSX - Free Report) )

The Russian economy contracted 0.4% year over year in Q3, marking the minimum shrinkage in seven quarters. Stubbornly low oil prices were mainly behind this prolonged downturn in the economy. Oil – seemingly the main commodity of the nation – posed huge risks to the nation.

About half of Russia’s exports in terms of value come from oil and natural gas as the country has the third-largest oil reserve in the world and the biggestnatural gas reserve. This makes it clear why Russia’s economy is highly dependent on the oil price movement.

1 2 3
View single page >> |


How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.