Oil-related exchange traded funds maintained their momentum Monday, with Brent crude oil prices breaking above $80 per barrel and on pace for its highest close in four years.
On Monday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, advanced 1.8% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, increased 2.5%.
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Meanwhile, WTI crude oil futures were 1.8% higher to $72.0 per barrel and Brent crude was up 2.7% to $80.9 per barrel.
Crude oil prices strengthened Monday, with global prices heading toward their highest close in almost four years, after the Organization of Petroleum Exporting Countries left production steady over the weekend and rising speculation that U.S. sanctions against Iran and outages in Venezuela will lead to supply shortages, the Wall Street Journal reports.
“The supply issues are real,” Chris Kettenmann, chief energy strategist at Macro Risk Advisors, told the WSJ. “The U.S.-Iran economic sanctions are only compounding the fact that buyers need to look elsewhere for delivery of barrels.”