Over the weekend, major Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil producers met in Doha, Qatar, to discuss a production freeze. Oil prices have collapsed amid a supply glut, however, in recent weeks, prices had bounced back sharply amid expectations that major OPEC and non-OPEC producers will agree to a production freeze.
During the weekend meeting, Saudi Arabia, the most important member of the OPEC, refused to freeze its output unless regional rival Iran did the same. Iran has said in the past that it will increase its production levels as it returns to the market after years of sanctions. The Saudi refusal has not surprisingly sparked a sell-off in oil markets. Analysts believe that oil prices could continue to slide in the near-term.
One way to bet on declining oil prices is through Horizons BetaPro NYMEX Crude Oil Bear Plus (ETF) (TSX: HOD). The ETF seeks daily investment results that correspond to two times (200%) the inverse of the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month. The ETF was up almost 2% in mid-day trading today.
