Crude oil has been a fickle trade.

Over the last few weeks, it’s been showing signs of weakness as volatility shot higher on trade war, and recess fears.  However, oil is again showing signs of life thanks to a bigger than expected draw of supply inventories.

A Bigger Than Expected Draw

The Energy Information Administration (EIA) just reported a 10-million-barrel draw in inventories – the largest in five weeks – along with declines in petroleum products.  Better, the American Petroleum Institute report6ed an 11.1-million-barrel decrease.

The EIA also reported that gasoline and distillate inventories each fell by 2.1 million barrels.

“It was an incredibly bullish report, one of the more bullish we’ve had in a while, with draws across the board and of course the massive crude oil drop, which was generated by another drop-in imports,” said John Kilduff, a partner at Again Capital, as quoted by CNBC. That draw down was likely due to a drop in Saudi exports to the U.S, he added.

Technically, if oil can break out of its wedge pattern – couple with even more bullish news. – we could see a potential test of $60 oil.

Investors are Just Starting to Get Bullish Again

Struggling oil stocks got a solid boost from that news, as investors become hopeful that oil prices will continue to rally, including Exxon Mobil, Chevron, and Devon Energy.

However, if you’re looking for diversification, at less cost, ETFs offer great exposure, too.

In fact, some of the top oil ETFs include:

SPDR Energy Select Sector ETF (XLE)

The Energy Select Sector SPDR Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Energy Select Sector Index.  It also seeks to provide precise exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries.  Not only does an ETF allow for diversification, you can buy it for less.  For example, we can buy the SPDR Energy Select Sector ETF (XLE) for $56.65 a share.  If we were to buy 100 shares, it would cost us $5,665.

If we were to buy some of the fund’s top holdings individually, it would cost much more than that with  Exxon Mobil, Chevron Corporation, ConocoPhillips, and Occidental Petroleum.

Inveseco DB Oil Fund (DBO)

This ETF seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return plus the interest income from the Fund’s holdings of primarily US Treasury securities and money market income less the Fund’s expenses.  It trades WTI crude futures, and traded at $9.64.

iShares Global Energy ETF (IXC)

The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector.  Trading at $28, some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.