Oil drops: good news or bad news for oil ETFs? The best ETF? Gasoline!

The recent Oil price decline, relatively speaking, an leave more money in the pockets of consumers, in other words, " boost consumers' discretionary spending power, calm inflation concerns and perhaps bolster confidence.


However, it may also reduce short-term demand.

Reuters reports that "fearful of further price increases, some U.S. businesses have rushed through orders and built up inventories. While that probably helped lift April's exports from China and elsewhere, it may have come at the expense of orders and future shipments".

At the heart of the question is that inventories are growing at U.S. manufacturing and services companies, as per reports last week by  the Institute for Supply Management's survey of purchasing managers. 

We track oil ETFs live here.

The best performing ETF since 2009: UGA, the gasoline ETF. We all knew that - every time we filled up.