USO Jumps to an 11-Year High as Brent Tops $116 and WTI Crosses $100
The United States Oil Fund (USO) touched $167.88, its highest level since May 2015, as December Brent rose to $116.15 and December WTI to $102.40 on attacks in Saudi Arabia's eastern oil region and escalating Iran tensions, according to Stocktwits.
The United States Oil Fund (USO) touched $167.88 on Friday, its highest level since May 2015, as oil extended its rally on Middle East tensions, according to Stocktwits. December Brent rose 2.63% to $116.15 a barrel, a six-month high, and December WTI gained 2.95% to $102.40.
The moves
| Item | Detail |
|---|---|
| USO | Touched $167.88, highest since May 2015; up over 145% year to date |
| December Brent | $116.15, up 2.63%, a six-month high |
| December WTI | $102.40, up 2.95% |
| Brent, year to date | Up more than 85%; on track for a third straight weekly gain |
| ProShares Ultra Bloomberg Crude Oil (UCO) | The 2x leveraged fund is up nearly 242% year to date |
By our calculation, Brent trades about $13.75 a barrel above WTI at those prices. Stocktwits also noted that USO remains down 41.7% since September 2010.
What is driving the rally
Attacks in Saudi Arabia's eastern oil region have raised concerns about energy infrastructure. Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely. The Houthis have claimed a string of strikes on Saudi targets over the past two days, including an Aramco site in Yanbu, according to The National.
Stocktwits also pointed to Iran's army chief saying the military was ready for "asymmetric warfare," amid speculation about renewed U.S. strikes, and reported that President Trump said Washington was not negotiating with Tehran.
What analysts are watching
Citi suggested the rebound in Strait of Hormuz shipments, which have recovered toward pre-war levels, may not last, since it could reflect inventory drawdowns. UBS warned that further escalation could renew supply disruptions and leave the market undersupplied. Stocktwits said retail sentiment on USO was bullish with high message volume.
Sources: Stocktwits, via Yahoo Finance (Oct. 23); The National (Oct. 23). USO, Brent and WTI prices and the analyst views are as reported by Stocktwits. USO and UCO are exchange-traded funds that hold oil futures contracts, and leveraged funds can lose value quickly. This is informational, not a recommendation to buy or sell.
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