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Oil and gas ETF options expand as prices stay elevated amid Iran conflict
The article points to gasoline futures exposure via UGA, noting its 1.08% annual fee and about 80% year to date return, alongside risks such as contango.
MarketBeat Ratings says the oil market is showing resilience to some of the usual price-mover signals after months of conflict in Iran, while U.S. supply and refining constraints may help keep oil and gas prices elevated.
It cites the U.S. Petroleum Reserve being at its lowest level in decades and a refinery capacity shortage as reasons investors may expect sustained high prices, even as the Trump administration could try to moderate them ahead of November's midterm elections.
The outlet also highlights that the energy sector is not uniform, pointing to record crack spreads and refinery boosts, then turns to exchange-traded funds as a way to get exposure with different strategies and risk profiles.
Among the examples, it describes the United States Gasoline Fund NYSEARCA: UGA as a gasoline-futures commodity fund that charges a 1.08% annual fee and has returned about 80% year to date, while warning that futures exposure can bring contango risk and that gasoline price changes do not perfectly track crude spot prices.
Latest closeWTI crude $78.07 ▲3.8%|Gasoline (RBOB) $2.703 ▼4.8%