Oil has been hanging around the $38-$40 a barrel area for a few weeks now. There’s a big battle going on now with declining consumer demand that remains far below production, and OPEC can’t seem to cut production enough to make a difference.
Gas prices are moving up ($2.00 per gallon) The disconnect between the two can be blamed on refineries, which are operating at their lowest capacity since 1992.
For a diversified energy play, the PowerShares DB Energy Fund (DBE) replicates an index tracking the prices of two different grades of crude oil, heating oil, gasoline and natural gas.
One problem with DBE – it’s very thinly traded. Hard to maneuver in and out of with market orders.
You are right on Randy, with avg volume 50K it isn’t for the faint of heart!!
Good Luck Today