Exchange traded funds (ETFs) indexed to oil futures were poised to open the second quarter higher as fighting in Libya between rebels and forces loyal to Moammar Gadhafi flared, sending crude prices above $107 a barrel Friday morning.
Aside from lingering unrest in the Middle East and North Africa, strong manufacturing data from China also boosted oil prices, the Associated Press reported.
U.S. Oil Fund (NYSEArca: USO) was rising in Friday’s premarket after gaining nearly 10% in the first quarter. [Commodity ETFs End Strong Quarter On High Note.]
U.S. Oil Fund before Friday’s opening bell was trading just shy of its 52-week high of $42.83 a share, recorded on March 7.
The escalating conflict in Libya has pushed crude-oil prices to their highest level since 2008 this week. However, oil ETFs that use futures contracts haven’t performed as well as the spot price due to contango and other factors, MarketWatch reported Friday.
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