Oil exchange traded funds lost more than 2% on Monday, falling to a new 52-week low as the latest European headlines continued to toss markets around.
“Every day you walk in, it’s more worries about Europe, more worries about the economy–and the markets are down,” said Tom Bentz, director at BNP Paribas Commodity Futures, in a Dow Jones Newswires report.
The $1.3 billion U.S. Oil Fund (NYSEArca: USO) slipped 2.2% in afternoon trading Monday. Crude futures dipped below $77 a barrel.
Oil began the first day of the fourth quarter at its lowest level in more than a year on concerns of another recession, a potential Greek default and a slowdown in China’s manufacturing, the Associated Press reported.
“We’re also at a lull in the market” after the summer driving season, independent analyst Stephen Schork said in the AP report. “This is when you tend to see weakness” in oil prices.
The oil ETF lost about 18% in the third quarter and was off nearly 22% year to date heading into Monday’s action. [Oil, Copper ETFs Fall on Growth Concerns]
U.S. Oil Fund