Over the last 4 weeks, the price of WTI Crude Oil has dropped over 20% from $52.00 to just under $42.00.
Increased shale production, more supply from Non-Opec nations and the unwinding of large speculative long positions have all factored into the recent price slide.
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However, from a technical perspective, we consider the price risks asymmetrically skewed to the upside from current levels. The likelihood of some sort of weather or politically-base supply disruption should also be taken into account.
For investors looking for a pure-play in a rebound in Crude Oil prices, we suggest looking at the BetaShare ETF with the symbol: OOO.
Shares of OOO are currently trading at $12.20.
On June 8th, with WTI trading at $46.00 per barrel, shares of OOO traded as high as $14.30. We believe this is a reasonable trade dynamic for a a short-term rebound in the WTI Crude Oil price.
BetaShare ETF: OOO
