Oil ETFs Rise 3% After Europe Agreement, GDP

October 27th 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.

β€œThe 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


The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers

USO XLE