Crude Oil Commodity

Crude oil commodity ETFs and mutual funds invest the majority of their... Crude oil commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to West Texas Intermediate (WTI) crude oil. WTI crude is the U.S. benchmark for oil prices. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of WTI crude is heading higher. WTI crude is affected by changes in economic growth and crude oil supply, making it an attractive commodity for investors who are either bullish on the economy or bearish on crude oil supply. As with other commodities, WTI crude is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as currency fluctuations, geopolitical tensions, and news regarding the Organisation of the Petroleum Exporting Countries (OPEC), which exerts a significant control over petroleum production, supplies, and prices in the global market. These funds are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less

Crude oil commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to West Texas Intermediate (WTI) crude oil. WTI crude is the U.S. benchmark for oil prices.... Crude oil commodity ETFs and mutual funds invest the majority of their assets in futures contracts tied to West Texas Intermediate (WTI) crude oil. WTI crude is the U.S. benchmark for oil prices. These funds tend to be passively managed and aim to provide exposure for investors who believe the price of WTI crude is heading higher. WTI crude is affected by changes in economic growth and crude oil supply, making it an attractive commodity for investors who are either bullish on the economy or bearish on crude oil supply. As with other commodities, WTI crude is not simply affected by changes in physical supply and demand. Speculators can play a big role in price movements. In addition, prices are often influenced by factors such as currency fluctuations, geopolitical tensions, and news regarding the Organisation of the Petroleum Exporting Countries (OPEC), which exerts a significant control over petroleum production, supplies, and prices in the global market. These funds are only appropriate for more aggressive investors. Last Updated: 11/26/2024 View more View less