On Tuesday, October 14, the International Energy Agency announced that it had sharply cut its forecast for oil demand, now predicting that full-year demand for 2014 would only increase by a mere 0.7 million bpd versus its previous estimate of 0.9 million bpd. In the wake of the IEA’s announcement, WTI Crude fell to a price $82.25/barrel (a level which has not been seen since mid-2012) and a number of oil-related ETFs also sold off quite sharply. That being said, I wanted to highlight three of these oil-related ETFs and note my year-end price targets for each.

#1 United States Oil ETF (USO) – With net assets of just over $650 million, the investment seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate light, sweet crude oil. The fund will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. Given its 52-week range of $30.63/share-to-$39.44/share, I strongly believe we could see its share price could fall well below the $27/share level by December 31, especially now that WTI Crude is trading at its lowest level since mid-2012.

#2 iPath S&P GSCI Crude Oil Total Return ETN (OIL) – With net assets of just over $200 million, the iPath S&P GSCI Crude Oil Total Return Index ETN is designed to provide with exposure to the S&P GSCI Crude Oil Total Return Index. The S&P GSCI Crude Oil Total Return Index (the "Index") is a sub-index of the S&P GSCI Commodity Index. The Index reflects the returns that are potentially available through an unleveraged investment in the West Texas Intermediate crude oil futures contract. Given its 52-week range of $19.79/share-to-$25.96/share, I strongly believe we could see its share price fall well below the $17/share level by December 31, especially since WTI Crude has the potential to trade below the $80/barrel level.

#3 PowerShares DB Oil ETF (DBO) - With net assets of just over $243 million, the PowerShares DB Oil ETF seeks to track the price and yield performance, before fees and expenses, of the Deutsche Bank Liquid Commodity Index - Optimum Yield Oil Excess Return. The index is a rules-based index composed of futures contracts on WTI Light, Sweet Crude Oil and is intended to reflect the performance of crude oil. Given its 52-week range of $24.08/share-to-$30.99/share, I strongly believe we could see its share price fall well below the $21/share level by December 31, especially since WTI Crude has the potential to trade at-or-below the $80/barrel mark.

Conclusion

For those of you looking to establish a position in any of the above mentioned ETFs, you'll need to be focused on the upcoming quarterly demand for WTI Crude as each ETF will be directly impacted by its performance. If, on one hand, demand continues to weaken, then there’s a very good chance we could see WTI trade in the very unfavorable range of $75/barrel-to-$80/barrel for at least the next three months. If, on the other hand, demand begins to reverse course, then I strongly believe the range of $85/barrel-to-$90/barrel is a very reasonable one.