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Energy ETF investors are betting oil’s rally is already over

U.S. crude inventories are near the highest in more than 20 years, according to the Energy Department.

Investors are cautiously pulling money out of energy producers the very first time in eight months, taking short-term gains after oil rebounded from the six-year low.

More than $1.55 billion has been withdrawn this month from exchange-traded funds concentrated on energy stocks for example Exxon Mobil Corp. and Chevron Corp. It\’s on pace for the first monthly setback for the group since investors began pouring into the sector in October with an eye toward profiting from an eventual recovery in prices.

\”The thesis that oil is simply too cheap and contains to go higher maybe is not as compelling a case with oil at $60 because it was if this was at $42,\”said Ryan Issakainen, a strategist initially Trust Advisors LP in Wheaton, Illinois.

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