How To Trade The Oil Rush With These ETFs

Oil's price recently nosedived into a bear market with U.S. crude futures falling more than 20% below their April peak. The decline in price came amid worsening trade friction with China and Mexico that raised fears of global growth slowdown threatening demand (read: Oil Likely to See Steepest Weekly Fall: Inverse ETFs to Profit).

Additionally, crude inventories unexpectedly increased last week, fueling fears of a supply glut. The latest U.S. government data showed that crude inventories climbed to the highest level since July 2017 in the week ended May 31. Weekly oil production also increased to an all-time high of 12.4 million barrels per day. The dual headwinds of rise in inventories and trade war tensions resulted in a decline in oil price.

However, the oil price rose 2% in Friday’s session on reports that the United States is considering a delay in tariffs on Mexico as talks continue and signs that OPEC and other producers may extend crude supply cuts.

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