CRAK ETF

Jan Van Eck, CEO of VanEck Associates, appears on CNBC's 'ETF Edge' with Bob Pisani to talk about the reflation trade, advising investors on how to navigate the current uncertainty and review VanEck's newest ETF offerings.

On December 6, U.S. crude oil experienced a sharp 4% decline, marking its lowest price since late June.

Though prices remained steady currently due to geopolitical tensions in the Middle East, chances of a prolonged bull run in oil prices have been dampened lately as the "demand destruction" became evident in the energy sector.

Oil prices jumped more than 4% on Oct 9, 2023 due to the Israel-Hamas conflict.

Oil futures touched a fresh 2023 high on Wednesday. Oil prices may hit $100/bbl soon.

Oil analysts forecast a sustain rally in the liquid commodity price may lead it to the $100-level by the end of this year.

Refineries are benefiting from a shift in crude exports. Both Saudi Arabia and Russia have cut their oil production---to prop up oil prices.

The CRAK ETF provides exposure to a portfolio of global refiners. A large gulf-coast refinery has been taken offline, tightening fuel markets. Tighter supply combined with expectations of Chinese stimulus could propel refiner stocks in the 2nd half of 2023.

CRAK is too tough to call, there are plenty of good reasons to see declines in the sector, and multiples are pricing in lots of problems. Crude prices get to stay higher because of exogenous supply cuts, but that's not happening in refining besides market-driven run-cuts while markets get used to Ukraine.