Commodities have started hot in 2021 as the investing world has bet on a global recovery. Countries like the United States and the United Kingdom have led the way with their vaccine rollouts. Unfortunately, there have still been setbacks and the light at the end of the tunnel has dimmed here at home. Regardless, oil stocks have proven to be a solid bet coming into the spring of 2021.
The price of WTI Crude was trading above the $60 U.S. mark in very early morning trading on March 31. Its price has stormed back from under the $20 U.S. mark this time last year. Goldman Sachs recently projected that WTI Crude would reach $75 U.S. or higher in the spring and summer. Other analysts have gone as far as to project a supercycle for oil prices.
A supercycle may be wishful thinking in a hostile environment for oil. However, its price increase holds promise for oil-focused equities. That’s why I’m targeting the Horizons Crude Oil ETF (TSX:HUC) to kick off the month of April. Its shares have climbed 22% in 2021 as of close on March 30. The ETF is up 62% from the prior year.
This ETF seeks investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavor to correspond to the performance of the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index ER. The ETF has suffered a dip with WTI Crude in late March, which is the perfect time for investors to buy the dip.
