A combination of increased supply and expectations that OPEC would eliminate cuts in oil output placed pressure on oil prices Wednesday, but a drop in U.S. crude stockpiles caused oil ETFs to start on the up side. As of 11:00 am Eastern Daylight Time, oil prices were up slightly at 0.11%.
Oil ETFs responded on the positive side early in the market opening with United States Oil Fund (NYSEArca: USO) up 0.36%, Invesco DB Oil Fund (NYSEArca: DBO) up 0.19%, ProShares Ultra Bloomberg Crude Oil (NYSEArca: UCO) up 0.88% and, VelocityShares 3x Long Crude Oil (NYSEArca: UWT) up 1.19%.
OPEC and non-OPEC oil producers like Russia started withholding output in 2017 in order to reduce a global supply, causing prices to rise 60 percent within the last year. Nonetheless, market analysts say the outlook for the oil market in the second half of 2018 is uncertain and OPEC is quick to point out the downside risks of global demand for oil.