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NEW YORK (TheStreet) -- Oil exchange-traded funds such as United States Oil Fund (USO) - Get United States Oil Fund LP Report, the United States 12 Month Oil Fund (USL) - Get United States 12 Month Oil Fund LP Report, the PowerShares DB Oil Fund (DBO) - Get Invesco DB Oil Fund Report, and the iPath S&P GSCI Crude Oil TR Index ETN (OIL) - Get iPath Pure Beta Crude Oil ETN Report are poised for gains on rising demand for crude oil.

According to the Energy Information Agency, global demand for crude oil for the remainder of the year is expected to increase to 86.06 million barrels per day, a 2.1% increase from last year.

Furthermore, the EIA expects global consumption to jump to 87.44 million barrels per day in 2011, an increase of nearly 300,000 barrels per day from previous forecasts due to resurgent demand in the U.S., Germany and Japan over the past three months.

That increased demand should cause inventories in industrialized nations to decline. Also, production from non-OPEC nations is expected to slow down in 2011, and OPEC is expected to leave its production levels stable in the coming months with minor production increases to come in 2011.

Thus, a supply and demand imbalance could lift crude oil prices and provide positive price support for the aforementioned ETFs.

Although an opportunity may exist in crude oil, it is equally important to consider the inherent risks that are involved with investing in commodities. Such risks can be mitigated through the use of an exit strategy that identifies when downward price pressure is likely to be seen. Such a strategy can be found at

www.SmartStops.net

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--Written by Kevin Grewal in Houston.

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At the time of publication, Grewal had no positions in equities mentioned.

Kevin Grewal is the founder, editor and publisher of

ETF Tutor and serves as the editor at

www.SmartStops.net , where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.