Oil ETFs Rise 3% After Europe Agreement, GDP
October 27th, 2011 at 9:09am by John Spence
Oil exchange traded funds rose 3% Thursday morning after leaders in Europe sorted out an agreement to boost the European Financial Stability Facility, the region’s bailout fund.
Crude futures were trading over $93 a barrel after a report estimating the U.S. economy grew 2.5% in the third quarter. [Stock ETFs Rally on Debt Deal]
U.S. Oil Fund (NYSEArca: USO) climbed 2.8% in preopen dealings Thursday to just above $36 a share.
The commodity ETF is down 10.1% year to date but has bounced 11.4% over the past month. It hit a 52-week low earlier this month at $29.10 a share.
“The countries at least showed the will to find a solution to the debt crisis, and the participation of the banking sector in a debt cut is certainly good news for the market,” Gerrit Zambo, a trader at Bayerische Landesbank, told Bloomberg.
Exxon Mobil (NYSE: XOM) on Thursday said its third-quarter profit rose 41% on higher crude prices.
Energy Select Sector SPDR (NYSEArca: XLE), which holds large-cap energy stocks, rose 2.6% before the bell.
U.S. Oil Fund
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