An exchange traded fund (ETF) that follows oil futures was down more than 1% before Monday’s opening bell following news al-Qaeda leader Osama bin Laden was killed in an operation led by the U.S.

U.S. Oil Fund (NYSEArca: USO) slipped 1.6% in premarket action. Meanwhile, PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) was set to open fractionally higher as the greenback strengthened.

Oil dropped the most in nearly seven weeks in London on hopes bin Laden’s death may lower the risk of supply disruptions in the Middle East, Bloomberg reported. “Good news on the geopolitical front has the potential to move prices back below $100,” said Ric Spooner, chief market analyst at CMC Markets, according to the report.

The oil ETF ended April with a year-to-date gain of nearly 16% as crude prices have risen on the unrest in Libya

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