Oil prices have built huge momentum since late 2020. Demand rebounded nicely in 2021 while lower production from OPEC led to a dip in supply. The ongoing conflict between Russia and Ukraine has also had a big impact on oil price fluctuations. Indeed, the price of WTI Crude rose above US$100/barrel at one point immediately following Russia’s invasion of Ukraine on February 24, 2022. Meanwhile, the price of Western Canadian Selection (WCS) also rose above $80/barrel.
Markets rebounded following their rough start on the morning of February 24. Oil prices also gave up their big gains. One major factor are ongoing negotiations with Iran, which is reportedly close to a renewed nuclear deal with the United States. This means that Iranian oil may be set to flood the market, putting a big dent in the supply issue.
Investors looking to get in on the oil space may want to consider snatching up the Horizons Crude Oil ETF (TSX:HUC). This exchange-traded fund (ETF) seeks to correspond to the performance of the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index ER. Shares of this Crude Oil ETF have climbed 11% in 2022 as of mid-afternoon trading on February 25.
This ETF is perfect for investors who want to track the base performance of oil rather than seek broad exposure to a stable of energy stocks.