Oil ETFs Strengthen Despite Lingering Supply, Demand Concerns | ETF Trends

Crude oil prices and commodity-related exchange traded funds popped Wednesday despite lingering concerns over rising production and a weakening global economy.

On Wednesday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, gained 1.6% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, increased 0.9%.

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Meanwhile, WTI crude oil futures rose 2.2% to $46.4 per barrel and Brent crude was up 1.9% to $54.8 per barrel on Wednesday.

“Given the high levels of price volatility we’ve witnessed over the last month, a $2 daily move isn’t really anything other than signs we continue to have price volatility,” Gene McGillian, vice president of market research for Tradition Energy, told Reuters.

Oil prices strengthened along with other risk assets, like U.S. equities, on Wednesday. However, weak manufacturing data from China added to ongoing concerns over a slowing global economy while increased output from large oil producers, such as Russia, also weighed.