Oil prices, oil ETFs, and energy ETFs crashed and burned today as the Saudis promised more oil production to increase supply and drive down prices. 

France, Britain, and The United States, in attempts to curb oil prices as well, began talks to release reserve oil supplies to supplement markets.  Natural gas continued its plunge today (over 5%) as supply continues to overwhelm demand in Canada, while unseasonably warm winters curb demand as well.

Oil ETF Update:

Oil Spot Price: -2.66%

United States Oil Fund LP ETF (NYSEARCA:USO): -2.24%, This ETF is a commodity based ETF designed to track the price of West Texas Intermediate Crude Oil.  The United States Oil Fund LP ETF (NYSEARCA:USO) reflects the price of oil delivered to Cushing, Oklahoma and is traded as futures contracts on The New York Mercantile Exchange (NYMEX).

United States 12 Month Oil Fund LP ETF (NYSEARCA:USL):  -2.18%, This ETF is a commodity based ETF designed to track the price of West Texas Intermediate Crude Oil.  The United States 12 Month Oil Fund LP ETF (NYSEARCA:USO) reflects the price of oil delivered to Cushing, Oklahoma and reflects the average of the next 12 months of oil futures contracts on The New York Mercantile Exchange (NYMEX).

Natural Gas ETF Update: 

Natural Gas Spot Price: -5.58%

United States Natural Gas Fund LP ETF (NYSEARCA:UNG): -5.26%, This ETF is a commodity based ETF designed to track the price of Natural Gas delivered to Henry Hub, Louisiana.  The United States Natural Gas Fund LP ETF (NYSEARCA:UNG) is traded as futures contracts on The New York Mercantile Exchange (NYMEX).

Energy ETF Update: 

Energy Select Sector SPDR Fund ETF (NYSEARCA:XLE): -.06%, This ETF tracks the performance of the S&P Energy Select Sector Index.  The S&P Energy Select Sector Index closely tracks companies within the S&P 500’s Energy Sector, including oil, gas, and energy equipment companies.

iShares Trust Dow Jones United States Energy ETF (NYSEARCA:IYE): -.05%, This ETF tracks the performance of US Energy Stocks in the Dow Jones US Oil & Gas Index.  The Dow Jones US Oil & Gas Index closely tracks oil and gas producers within the energy sector of the US Equities Market.

Bottom Line: Oil prices and oil ETFs, and natural gas prices and natural gas ETFs, crashed and burned today as the Saudis promised more production while the US, France, and Britain began discussions to release emergency oil reserves into the market to help curb high gas prices. 

General energy prices have been high since October as over speculation and fear of an Iran conflict have stoked prices higher.  Perhaps now, oil, oil ETFs, and general energy ETFs are facing a bubble, especially if the Saudis and Western Governments begin to ease supply.

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Disclaimer: Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.

About John Nyaradi (http://www.wallstreetsectorselector.com) John Nyaradi is Publisher of Wall Street Sector Selector: Your Home For ETF Investing! John writes a weekly guest column, John Nyaradi’s ETF Edge for MarketWatch.com and his investment articles have appeared in many online publications including Trading Markets, Money Show, Yahoo Finance, Investors Insight, Fidelity, ETF Daily News, iStock Analyst , among many others. His book, Super Sectors: How to Outsmart the Market Using Sector Rotation and ETFs, is published by John Wiley and Sons and included among the Years Top Investment Books in the 2011 Stock Trader’s Almanac.