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Energy ETFs Rise on Crude Oil Prices, Fall on Natural Gas Prices

By  +Follow October 2, 2013 9:02AM
Tickers Mentioned:

Those ETFs tracking the price of crude oil jumped today as crude prices rebounded from lows yesterday that finished just over $102 a barrel. Prices rallied today, with contracts for November 13th delivery jumping over 1.75 percent to about $103.80 a barrel by the afternoon. This carried crude oil ETFs with it, with the United States Oil Fund ($USO) gaining over 2.1 percent, the iPath S&P GSCI Crude Oil Total Return (OIL) rose almost 2.25 percent, and the PowerShares DB Oil Fund ($DBO) jumped over 1.5 percent.

Crude Oil Prices Rise as Pipeline Section Nears Completion

Several factors could have affected crude oil on Wednesday, with the biggest news item being the announcement from TransCanada (TRP) that the southern spur of the Keystone pipeline was nearing completion. The Canadian petroleum company said that the Gulf Coast section of the pipeline, which could carry as much as 700,000 barrels a day if completed, was about 95 percent finished.

Also acting on crude prices was news that crude oil stockpiles in Cushing, OK fell for a 13th straight week, a record stretch. Dropping another 59,000 barrels, stocks reached 32.8 million barrels, the lowest level since February of 2012. Many believe that a completed Keystone pipeline could continue to cut into that supply.

"This is going to add to the drain on Cushing quite a bit," said Again Capital’s John Kilduff in reference to the near-completed southern spur.

Still others saw today’s price-jump as a market correction after a lengthy slide in oil prices. With calming tensions over Syria, the threat of geopolitical supply disruptions has appeared lower and dropped prices for weeks.

Tariq Zahir of Tyche Capital Advisors said "we were due for this kind of a bounce after what we have seen."

ETFs Fall with Natural Gas Prices

Natural gas, meanwhile, moved sharply against oil, with contracts for November 13 delivery falling over 1.75 percent in value on Wednesday. This took popular natural gas ETFs down, with the United States Natural Gas Fund (UNG) off almost 1.75 percent and United States 12 Month Natural Gas (UNL) falling almost 2 percent. This comes amid news that a major storm continues to develop near the Gulf of Mexico. The storm isn’t predicted to disrupt supply, but profit-takers opted to sell on Wednesday just to be safe. Natural gas has already be losing ground as cooler fall weather means Americans are using less air-conditioning and, as a result, less natural gas.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for uso
22 Dec 14 14:01:17
$USO Morgan Stanley Sees Short-Term Upside For Brent Crude Oil, Questions Long-Term Viability http://t.co/UYSeF4wWPa
The Original PUA
22 Dec 14 13:54:12
Our #crude friend #brent's fingertips are hanging on a ledge, sixty stories up. Freefall imminent. $oil $sco $dwti $uso
22 Dec 14 13:50:42
#WTI $USO -5% decouples as #stocks rise. Same premise into 18/12 #trading ➡️ YPT SCRIPTED... https://t.co/RLwpn5IEnI http://t.co/aaie88pv1S
Moise Levi
22 Dec 14 13:38:48
#Crude $USO Saudi Oil Minister: I Don't Care If Prices Crash To $20, We're Not Budging!
Greg Harmon, CMT
22 Dec 14 13:20:43
$CL_F $USO failed attempt to bounce, 56/57.5/60 resistance, support 55/50 http://t.co/W2J7B46sKU
Drew Voros
22 Dec 14 13:14:06
Market Wrap: NatGas Slammed 9% Lower; Oil & Gold Drop As Dollar Hits 8 1/2-Year High $UNG $USO $GLD http://t.co/0QtYOvlasB
22 Dec 14 13:13:14
.@RudyHavenstein Hm. Looks like his $uso / $whaleoil spread betting has run its course. http://t.co/3AelDH9dCP
22 Dec 14 13:10:23
RT @CalConfidence: Sterne Agee Comments On Energy Loans, Sees Banks Protected On Loans To Energy Companies $USO http://t.co/CaB8ErQbFR via…
22 Dec 14 13:08:12
Sterne Agee Comments On Energy Loans, Sees Banks Protected On Loans To Energy Companies $USO http://t.co/CaB8ErQbFR via @benzinga
22 Dec 14 13:01:52
RT @SeekingAlpha: Drilling Our Way Into Oblivion http://t.co/VpFn7XCFb0 $USO $OIL $UCO $SCO $BNO $DTO $DBO $CRUD $UWTI $USL $DWTI $DNO $SZO…
Seeking Alpha
22 Dec 14 13:00:06
Drilling Our Way Into Oblivion http://t.co/VpFn7XCFb0 $USO $OIL $UCO $SCO $BNO $DTO $DBO $CRUD $UWTI $USL $DWTI $DNO $SZO $OLO $OLEM
Juan Carlos Minero
22 Dec 14 12:55:23
No hace sentido que $ALFA tenga un dia positivo con $pre y $uso en la calle de la amargura #FTR1
22 Dec 14 12:52:55
still holding feb $21 $USO puts..
Diverging Markets
22 Dec 14 12:48:12
RT @bySamRo: Basically, everyone's saying this is the bottom. Makes me think there's more downside. http://t.co/t3N9DcZyrg $USO $XLE
N. Abramowski
22 Dec 14 12:25:42
$MRTN - b/o watch above $22. Small cap transport beneficiary of lower gas and econ. $IWM $SPY $USO http://t.co/wYXMSimfSb
22 Dec 14 12:24:07
Normal TS #s removed from this chart. Chart only showing the day's LIS and Execution/Target Zones. $CL_F $USO $STUDY http://t.co/BX6Ky1EaBe
22 Dec 14 12:23:04
Monday Dec 22, 2014 $CL_F TS TradePlan Oil Review $USO $STUDY http://t.co/cX8c0P8Z6w
Herbert R Tarlic Jr
22 Dec 14 12:17:56
@JaviFusco Long $USO here and out of lube. Sent it all to @big7x7
22 Dec 14 12:08:04
Is Oil Near A Bottom http://t.co/DSFzfF52sq -> @RobertWeinstein $USO $UNG
CP Trader
22 Dec 14 12:08:00
Algo de lo que tenemos largo $AAPL $CMG $SPX $TWTR y corto $TSLA $USO $SLV #FTR1
CapCube 2.0
22 Dec 14 12:05:36
$XOP down $1 but holding up pretty well given the action in $USO and especially $UNG and nat gas names
Daily Contracts
22 Dec 14 12:04:00
Real-Time feed of company contracts, original agreements and executive updates from United States Oil Fund Lp $USO http://t.co/Oj9r1Jy382
22 Dec 14 11:53:17
Our Penny Stock Pick On $RGMI Gained 89.19% Today! Huge Update: http://t.co/iLjEBOLDF5 $USO $EWP $CORN
ken wood
22 Dec 14 11:52:25
$CL_F $USO nice moves for cci traders again today on crude http://t.co/3jgmMmPI4k
22 Dec 14 11:46:52
When is the Fed going to start buying #Oil ? $USO $CL_F
german cueva
22 Dec 14 11:45:38
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
Haki Hika
22 Dec 14 11:41:06
For those tracking along at home, I'm long a bunch of $USO @ 28 (put sale assignment. Will be selling calls on pops. Merry Christmas.
David Nelson
22 Dec 14 11:36:36
What Does Lower Oil Prices Mean for the World Economy? $USO $XLE http://t.co/jhaCFHE8Rl
Trader Josh
22 Dec 14 11:33:14
Understand oil in less then 3 minutes.. http://t.co/cmuSDFlxA3 $USO $USOIL
22 Dec 14 11:29:16
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
Manic Trader
22 Dec 14 11:28:14
What u watch for oil? $USO? $USO http://t.co/QRVP2Dr9Om
22 Dec 14 11:24:04
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
John Roberts
22 Dec 14 11:22:49
$USO knocking on the door again
22 Dec 14 11:22:40
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
22 Dec 14 11:22:20
It's not a matter of whether I will make an entry into $USO, just a matter of when I feel like this hot heaping turd has bottomed.
22 Dec 14 11:18:27
Oil Is Reaching A Bottom $UNG http://t.co/vtdgPv2ikF @RobertWeinstein $USO
22 Dec 14 11:16:12
$USO Still waiting for it to perk up a bit to really send my oil stock raging into close
Leo Kolivakis
22 Dec 14 11:14:42
Why this is not the end of oil's plunge $USO http://t.co/b7EOToobWf via @YahooFinance
L♥ve That Bl♣b
22 Dec 14 11:11:12
on 12/17/14 rolled out again $USO 02/20/2015 20.00 SPO 1 $0.82 $0.76 $81.24 BTC USO 12/20/2014 28.00 P 1 $5.82 $8.71 -$590.71
22 Dec 14 11:08:28
$OAS r/g, fairly impressive as $USO is still bricked and OAS usually tracks it pretty close
Andy L.
22 Dec 14 11:07:19
RT @marketminute: $USO if can recapture 21.50 looks better-w/ potential ripple effect to solars $TAN
22 Dec 14 10:58:21
@TheycallmeMcD Pulled my stop when $USO turned bullish -- added more $EXXI
22 Dec 14 10:58:16
RT @moon_shine15: $USO has turned bullish -- back in oil
22 Dec 14 10:57:34
$USO has turned bullish -- back in oil
Silence Dogood 2.0
22 Dec 14 10:50:44
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
22 Dec 14 10:46:35
RT @DividendMaster: yeah .... his fund was long $TLT & short $USO all 2014 . http://t.co/Yt8U9Twjgz
Tracy Ikard
22 Dec 14 10:46:29
@HerbertRTarlicJ Was starting to make some ground up on $USO on Friday. Today, I am getting full treatment. #WCPGW
22 Dec 14 10:43:04
$USO: Citigroup Sees Credit Market At Center Of Shale Outcomes http://t.co/rsPncnGVqc http://t.co/LTZLzTLx57
Tracy Ikard
22 Dec 14 10:42:01
@HerbertRTarlicJ Oh, I forgot. Too much lube on brain. I will get with program and add $USO here on lows.
22 Dec 14 10:40:25
Taking out the stop for $OAS-- will let $USO have a chance here.
By  +Follow October 2, 2013 9:02AM



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