Oil prices have been on a spike in recent weeks on concerns over Russian supply following increased Ukrainian drone strikes. Both Brent crude and West Texas Intermediate hit four-and-a-half-month. Additionally, lower crude exports from Saudi Arabia and Iraq, along with signs of stronger demand in China and the United States, led to the strength.

The combination of factors has driven energy stocks and ETFs. In fact, many ETFs hit new 52-week highs in the latest trading session. These are Invesco Dorsey Wright Energy Momentum ETF (PXI Quick QuotePXI - Free Report) , Invesco Energy Exploration & Production ETF (PXE Quick QuotePXE - Free Report) , First Trust Nasdaq Oil & Gas ETF (FTXN Quick QuoteFTXN - Free Report) , iShares U.S. Oil & Gas Exploration & Production ETF (IEO Quick QuoteIEO - Free Report) and Pacer American Energy Independence ETF (USAI Quick QuoteUSAI - Free Report) .

Ukraine has increased drone strikes on Russian oil infrastructure this year, with at least seven refineries targeted just this month. The attack has shut down nearly 7% or 370,500 barrels per day (bpd) of Russia's refining capabilities, as reported by Reuters.

While lower refining activity has led to a rise in Russian crude oil exports, it would also lead to crude oil production cuts as the country faces storage constraints. Analysts from JP Morgan suggest that these assaults could result in a decline of 350,000 bpd of global petroleum supplies and boost U.S. crude prices. Even if the attacks do not lead to a direct loss of Russian crude supply, there will still be a spillover effect for oil prices from surging refined product margins (read: Time for Oil & Energy ETFs?).

Per the latest report from the American Petroleum Institute, U.S. crude oil stocks fell 1.5 million barrels in the week ended Mar 15. A Reuters poll of analysts expected stocks to rise 10,000 barrels last week.

On the other hand, the demand for oil is improving. The IEA revised its 2024 oil demand outlook upward for the fourth time since November, citing disruptions in Red Sea shipping due to Houthi attacks. The forecast indicates an increase in global demand by 110,000 bpd from the previous projection to 1.3 million bpd. The improved forecast came from signs of economic growth in China and the United States. Further, oil is gaining support from declining crude exports from Saudi Arabia and Iraq.

However, a higher dollar is weighing on the oil price. This is because a stronger dollar makes oil more expensive for investors holding other currencies, dampening demand. Notably, the U.S. dollar index has been on the rise over the past week after recent data pointed to a resilient U.S. economy.

Here, we have profiled the above-mentioned ETFs:

Invesco Dorsey Wright Energy Momentum ETF (PXI Quick QuotePXI - Free Report) : 52-Week High - $47.96

Invesco Dorsey Wright Energy Momentum ETF tracks the Dorsey Wright Energy Technical Leaders Index, which is designed to identify companies that are showing relative strength (momentum). The fund has 33 stocks in its basket, with an AUM of $71.8 million.

Invesco Dorsey Wright Energy Momentum ETF charges 60 bps in annual fees and trades in a good volume of 23,000 shares a day on average. PXI has a Zacks ETF Rank #2 (Buy), with a High risk outlook.

Invesco Energy Exploration & Production ETF (PXE Quick QuotePXE - Free Report) : 52-Week High - $34.67  

Invesco Energy Exploration & Production ETF follows the Dynamic Energy Exploration & Production Intellidex Index, which thoroughly evaluates companies involved in the exploration and production of natural resources used to produce energy based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value.

Holding 32 stocks in its basket, Invesco Energy Exploration & Production ETF has amassed $140.2 million in its asset base and charges 60 bps in annual fees. It trades in a volume of 34,000 shares and has a Zacks ETF Rank #2, with a High risk outlook (read: Top-Ranked Energy ETFs to Ride the Rebound in Oil Prices).

First Trust Nasdaq Oil & Gas ETF (FTXN Quick QuoteFTXN - Free Report) : 52-Week High - $31.60  

First Trust Nasdaq Oil & Gas ETF follows the Nasdaq US Smart Oil & Gas Index, which provides exposure to U.S. companies within the oil and gas industry. It is a basket of 42 stocks and has amassed $216.3 million in its asset base.

First Trust Nasdaq Oil & Gas ETF trades in an average daily volume of around 79,000 shares and charges 60 bps in annual fees. FTXN has a Zacks ETF Rank #3 (Hold).

iShares U.S. Oil & Gas Exploration & Production ETF (IEO Quick QuoteIEO - Free Report) : 52-Week High - $104.05

iShares U.S. Oil & Gas Exploration & Production ETF provides exposure to U.S. companies that are engaged in the exploration, production and distribution of oil and gas. It tracks the Dow Jones U.S. Select Oil Exploration & Production Index and holds 47 stocks in its basket. iShares U.S. Oil & Gas Exploration & Production ETF is concentrated on the top four firms, whereas other firms hold less than 5% share.

iShares U.S. Oil & Gas Exploration & Production ETF has an AUM of $728 million and trades in an average daily volume of 122,000 shares. The fund charges 40 bps in fees per year and has a Zacks ETF Rank #4 (Sell), with a High risk outlook.

Pacer American Energy Independence ETF (USAI Quick QuoteUSAI - Free Report) : 52-Week High - $31.14

Pacer American Energy Independence ETF is a strategy-driven ETF that aims to offer investors exposure to the United States and Canada-based companies that generate the majority of their cash flows from midstream energy infrastructure activities. It follows the American Energy Independence Index and holds 31 stocks in its basket.

Pacer American Energy Independence ETF has accumulated $52.4 million in its asset base and trades in a volume of 6,000 shares per day on average. It charges 75 bps in annual fees.