SPDR S&P Oil & Gas Explor & Product (ARCA: XOP)

Dernières nouvelles pour SPDR S&P Oil & Gas Explor & Product (ARCA:XOP)

SPDR S&P Oil & Gas Explor & Product

Energy

Basic Materials

Consumer Cyclical

Healthcare

In seeking to track the performance of the S&P Oil & Gas Exploration & Production Select Industry Index, the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the oil and gas exploration and production segment of the S&P Total Market Index (S&P TMI).

Apa Corp.

Matador Resources Co

Exxon Mobil Corp.

Diamondback Energy Inc.

Civitas Solutions Inc

Eog Resources Inc

Hess Corp.

Valero Energy Corp.

Phillips 66

Chord Energy Corp.

Texas Pacific Land Trust

Antero Resources Corp

Eqt Corp

Coterra Energy Inc

Range Resources Corp

Devon Energy Corp.

Chesapeake Energy Corp

Chevron Corp.

Murphy Oil Corp

Cnx Resources Corp

Ovintiv Inc.

Hf Sinclair Corporation

Marathon Petroleum Corp.

Conocophillips Co

Permian Resources Corp

SPDR S&P Oil & Gas Exploration & Production ETF

Israel&#8217;s attacks on Iran&#8217;s energy infrastructure is causing a run-up in global energy prices, with futures markets, and ETFs, all seeing substantial inflows.
What Happened: Attacks on Iran&#8217;s Shahran oil depot in Tehran, alongside a natural gas field and multiple oil refineries by Israeli forces over the weekend, are sending global energy prices soaring, with Brent crude oil futures trading at $73.54 a barrel, up 9.1% over the past week.
The attacks that are part of Israel&#8217;s ongoing campaign against Iran have been focused on the nation&#8217;s energy infrastructure, and not just its military assets. This is aimed at sowing further discontent among the Iranian populace, who are already dealing with blackouts and power cuts due to mismanagement, according to a <a href="https://www.telegraph.co.uk/world-news/2025/06/15/israel-is-attacking-iran-where-the-regime-fears-most/">report</a> by The Telegraph, a U.K.. daily.
See Also: <a href="https://www.benzinga.com/news/politics/25/06/45965629/trump-exits-g7-summit-early-citing-obvious-reasons-amid-escalating-iran-israel-conflict-gold-oil-etfs-spike-in-after-hours-trading">Trump Exits G7 Summit Early Citing &#8216;Obvious Reasons&#8217; Amid Escalating Iran-Israel Conflict: Gold, Oil ETFs Spike In After-Hours Trading</a>
Brent crude for August delivery surged more than 7% Friday to settle above $78 a barrel, its largest one-day gain in nearly six months. WTI futures also jumped 6.69% over the past week, before paring gains on Monday as ceasefire rumors circulated.
Energy ETFs such as the ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>), the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), and the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) all saw outsized gains over the past week, at 13.61%, 8.90%, and 5.59%, respectively.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF</th>
<th class="has-text-align-center" data-align="center">1-Week Performance</th>
<th class="has-text-align-center" data-align="center">YTD Performance</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td class="has-text-align-center" data-align="center">+13.61%</td>
<td class="has-text-align-center" data-align="center">-8.61%</td>
</tr>
<tr>
<td>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>)</td>
<td class="has-text-align-center" data-align="center">+8.90%</td>
<td class="has-text-align-center" data-align="center">+2.16%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td class="has-text-align-center" data-align="center">+5.59%</td>
<td class="has-text-align-center" data-align="center">-1.28%</td>
</tr>
<tr>
<td>Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td class="has-text-align-center" data-align="center">+3.88%</td>
<td class="has-text-align-center" data-align="center">+1.36%</td>
</tr>
</tbody>
</table>
</figure>
Why It Matters: On Monday, President Donald Trump asked all U.S. citizens to &#8220;immediately&#8221; <a href="https://www.benzinga.com/news/events/25/06/45964856/trump-asks-everyone-to-immediately-evacuate-tehran-odds-of-us-striking-iran-spike-on-crypto-betting-platform">evacuate the city</a> of Tehran, highlighting the seriousness of the crisis, while increasing the likelihood of the United States joining Israel in its war against Iran.
The crisis has since led to a <a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45948662/iran-israel-tensions-fuel-oil-rally-investors-are-piling-into-energy-etfs">rally in energy ETFs</a>, with the likes of the Energy Select Sector SPDR Fund seeing their biggest inflows since October 2024, at $470 million. 
Analysts at ING and JPMorgan have warned that a <a href="https://www.benzinga.com/markets/commodities/25/06/45924154/the-120-oil-shock-just-became-a-real-risk-are-we-back-in-2022">protracted supply hit</a> could send prices to upwards of $120 a barrel, adding that &#8220;Iran is a meaningful oil producer, pumping 3.3 million barrels per day and exporting around 1.7 million.&#8221;
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="190" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-1024x190.png" alt="" class="wp-image-951559" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-1024x190.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-300x56.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM-768x143.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/17000014/Screenshot-2025-06-17-at-9.29.59-AM.png 1174w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
According to Benzinga&#8217;s Edge Stock Rankings, the United States Oil Fund has a strong momentum, along with a favorable price trend in the short, medium, and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here</a> for deeper insights.
Read More: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/events/25/06/45964856/trump-asks-everyone-to-immediately-evacuate-tehran-odds-of-us-striking-iran-spike-on-crypto-betting-platform">Trump Asks &#8216;Everyone&#8217; To Immediately Evacuate Tehran, Odds Of US Striking Iran Spike On Crypto Betting Platform</a></li>
</ul>

News

Commodities

Markets

Israel Is Pounding Iran's Energy Infrastructure And It's Sending These Oil ETFs Soaring, But It Maybe Bad News At The Gas Pump

On Friday, a day after Israel launched &#8220;Operation Rising Lion&#8221; targeting over 100 Iranian nuclear and military sites, Iran retaliated with missile <a href="https://www.benzinga.com/news/topics/25/06/45933856/iran-fires-ballistic-missiles-at-israel-tel-aviv-struck" target="_blank" rel="noreferrer noopener">attacks on Israel</a>. The strikes marked the start of what Iranian state media called &#8220;The Hard Retaliation.&#8221;
The state media confirmed the death of Iran&#8217;s Islamic Revolutionary Guard Corps (IRGC) Commander-in-Chief Hossein Salami. Israel&#8217;s Defense Ministry claimed most IRGC leadership was killed.
The conflict between Israel and Iran has had a notable impact on the <a target="_blank" href="https://www.benzinga.com/markets/macro-economic-events/25/06/45943707/us-economy-to-face-pretty-limited-impact-from-israel-iran-airstrikes-with-only-a-tiny-bit-recession-risk-say-economists" rel="noreferrer noopener">global financial markets</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/25/06/45944854/irans-missile-stockpile-may-be-shrinking-as-strikes-on-israel-taper-off-says-think-tank-lmt-rtx-" rel="noreferrer noopener">Iran&#8217;s Missile Stockpile May Be Shrinking As Strikes On Israel Taper Off, Says Think Tank: LMT, RTX, GD In Focus</a>
The&nbsp;Dow Jones index fell over&nbsp;700 points on Friday following Israel&#8217;s surprise airstrike on Iranian nuclear sites. Despite this, the&nbsp;CNN Money Fear and Greed index&nbsp;showed a&nbsp;decline&nbsp;in overall market sentiment, remaining in the &#8220;Greed&#8221; zone.
The&nbsp;SPDR Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) witnessed consistent demand throughout the week, recording five straight days of inflows. Weekly net investments hit $310 million, the fund&#8217;s <a target="_blank" href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45948662/iran-israel-tensions-fuel-oil-rally-investors-are-piling-into-energy-etfs" rel="noreferrer noopener">second-strongest week of 2025</a>.
Other sector-focused ETFs trailed the energy fund&#8217;s inflows, with the&nbsp;Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) pulling in $295 million and the&nbsp;Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)&nbsp;attracting $267 million for the week.
D. Boral analyst Jesse Sobelson has expressed concerns that current market conditions are creating uncertainty for general equity investors. This uncertainty, in his view, could lead to a resurgence of inflation and increased volatility, particularly in sectors that are heavily reliant on <a target="_blank" href="https://www.benzinga.com/markets/commodities" rel="noreferrer noopener">raw material costs</a>.
Energy exploration and production (E&amp;P) stocks, especially U.S. companies with little exposure to the Middle East, might benefit from a sustained increase in oil prices, he pointed out.
He further emphasized that this situation exacerbates the already challenging OPEC+ negotiations as member countries grapple with escalating security risks and internal, often conflicting, priorities.
Sobelson posits that Tetra Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TTI#NYSE">TTI</a>) stands to gain if U.S. shale activity experiences a resurgence. He anticipates that an uptick in drilling by energy companies would directly increase demand for Tetra&#8217;s specialized water and chemical services, thereby boosting the company&#8217;s performance.
Pedevco Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PED#NYSE">PED</a>), which operates in the Permian Basin, could see strong gains if oil prices rise due to its high sensitivity to changes in crude prices, he asserted.
While more focused on natural gas, EON Resources Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EONR#NYSE">EONR</a>) has midstream assets and some oil-linked revenues that could rise with oil prices and support ongoing deal talks, Sobelson stated.
He emphasized that all three companies are particularly well-positioned for strong performance amidst a volatile, supply-constrained oil market.
The analyst stated, &#8220;We believe current oil prices embed an elevated&#8217; risk premium&#8217; due to the heightened probability of conflict spreading to critical oil infrastructure or shipping lanes. The Strait of Hormuz, responsible for approximately 20 million barrels per day of oil flow connecting the Persian Gulf to the Gulf of Oman, is specifically highlighted as a key piece of infrastructure to monitor closely.&#8221;
Price Action: TTI stock is up 3.2% at $3.6, EONR stock is down 11.1% at $0.51, and PED stock is down 4.32% at $0.73 at the last check on Monday.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/equities/25/06/45952716/stock-market-today-sp500-rises-iran-israel-nasdaq-near-record-highs" target="_blank" rel="noreferrer noopener">Wall Street Roars Back As Iran Signals De-Escalation: Nasdaq 100 Nears All-Time High</a></li>
</ul>
Photo via Shutterstock

Analyst Color

Penny Stocks

Global

Analyst Ratings

Trading Ideas

General

EONR

These Penny Stocks Stand To Gain From Israel-Iran Conflict Induced Volatility In Crude Oil: Analyst

Investors have flocked into energy plays in the aftermath of last week's flare-up between Israel and Iran, signaling heightened expectations that escalating geopolitical tensions in the Middle East will continue to lift oil prices <a href="https://www.benzinga.com/markets/commodities">and benefit U.S. energy firms.</a>
On Friday, a day after Israel launched "Operation Rising Lion" targeting over 100 Iranian nuclear and military sites and Iran retaliated with missile attacks on Israeli cities, the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) attracted $199 million in fresh capital, according to TradingView data.
That marks the largest single-day inflow since late April and the third-highest this year. 
Over the full week, XLE pulled in $470 million—its biggest weekly haul since October 2024—while also logging six consecutive sessions of gains, the longest winning streak in eight months. 
Looking at specific energy industries, the SPDR Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) also witnessed consistent demand throughout the week, recording five straight days of inflows. Weekly net investments hit $310 million, the second strongest week of 2025 for the fund.
Other sector-focused ETFs trailed the energy fund's inflows, with the Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) pulling in $295 million and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) attracting $267 million for the week.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>ETF Name</th>
<th>ETF Weekly Flows (Jun 9 &#8211; Jun 13)</th>
<th>Performance 1W</th>
</tr>
</thead>
<tbody>
<tr>
<td>Energy Select Sector SPDR Fund</td>
<td>+$470 million</td>
<td>+5.6%</td>
</tr>
<tr>
<td>Materials Select Sector SPDR Fund</td>
<td>+$295 million</td>
<td>-0.5%</td>
</tr>
<tr>
<td>Utilities Select Sector SPDR Fund </td>
<td>+$267 million</td>
<td>+0.3%</td>
</tr>
<tr>
<td>Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>+$259 million</td>
<td>-2.6%</td>
</tr>
<tr>
<td>Communication Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>+$240 million</td>
<td>-1.1%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>+$217 million</td>
<td>+0.3%</td>
</tr>
<tr>
<td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>+$53 million</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>+$4 million </td>
<td>0.0%</td>
</tr>
<tr>
<td>Industrials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-$64 million</td>
<td>-1.6%</td>
</tr>
<tr>
<td>Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>-$200 million</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-$262 million</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Big Fear Is Iranian Oil Disruption</h3>
The renewed conflict pushed West Texas Intermediate crude to $72 per barrel by Friday, a 12% weekly gain and its strongest performance in years, as investors priced in rising supply risks.
Riding the wave of higher oil prices, the Energy Select Sector SPDR Fund outperformed the S&amp;P 500 by 6% last week—its biggest weekly outperformance since September 2024 and the second largest since October 2022.
"Thus far, at least, Israel has not directly targeted Iran's oil supply, which appears to be unaffected," said Matthew Ryan, head of market strategy at Ebury, in an emailed comment. 
"The big fear for investors is that an escalation will not only raise the risk of a prolonged conflict, but it could disrupt Iranian oil production."
The Goldman Sachs commodities team sees a rising geopolitical risk premium. In one modeled scenario, they assume Iran's output drops by 1.75 million barrels per day over six months due to infrastructure damage, with core OPEC+ offsetting only half of that.
In such a case, Brent could peak just above $90 before falling back to the $60s in 2026 as Iranian supply recovers.
Yet, Goldman's Daan Struyven also warned of more extreme outcomes. If broader regional production or logistics—especially in the Strait of Hormuz, the narrow passage that carries nearly 20% of global oil—are impacted, prices could exceed $100 per barrel.
"In that extreme tail scenario, OPEC+ may be unable to deploy enough spare capacity," Struyven said, highlighting that the oil market remains vulnerable to sudden shocks, particularly through chokepoints like Hormuz.
Read now: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/06/45940903/a-thin-strip-of-water-keeps-the-world-economy-on-edge-will-it-trigger-a-100-oil-shock">A Thin Strip Of Water Keeps The World Economy On Edge: Will It Trigger A $100 Oil Shock? </a></li>
</ul>
Photo: Shutterstock

Sector ETFs

ETFs

XLRE

Select Sector SPDR-Consumer Discretionary

Iran-Israel Tensions Fuel Oil Rally, Investors Are Piling Into Energy ETFs

As global tensions in the Middle East highlight a volatility in the oil markets, an expert suggests the U.S. economy&#8217;s susceptibility to oil price shocks has significantly diminished compared to previous decades.
What Happened: According to Bob Elliott, the CIO of Unlimited Funds, the shift in the mechanical impact of rising oil prices is primarily due to the United States&#8217; transition into a net exporter of crude products.
Traditionally, oil price surges acted as a significant drag on household spending and often prompted central banks to adopt tighter monetary policies to combat inflation. However, Elliott&#8217;s detailed examination reveals a changed landscape.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The US economy is far less sensitive to an oil shock than in previous decades. While the ongoing Mideast conflict is a concern, it would take multiples of the the impact priced in so far to have meaningful economic impact. Thread.
&mdash; Bob Elliott (@BobEUnlimited) <a href="https://twitter.com/BobEUnlimited/status/1934558230123782446?ref_src=twsrc%5Etfw">June 16, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
While consumer gasoline prices might still see a moderate uptick following price increases, the overall impact on household consumption is far less profound. Spending on fuel has fallen to a mere 1.3% of total household consumption, making recent price movements &#8220;not noticeable&#8221; in the broader economic context, Eliott explains.
&#8220;The surge in US production to the point where the US is a net exporter highlights how an oil shock may not be nearly as detrimental as in past rounds. While it would create a drag on HH consumption and rising inflation, it will also support domestic production &amp; investment,&#8221; he said in an X thread.
Furthermore, the surge in domestic oil production means that higher prices now generate increased income for U.S. oil producers, offsetting some of the drag felt elsewhere. This domestic boost in income and the incentive for greater production efforts highlight a crucial difference in the economic equation.
Here&#8217;s a list of a few U.S. oil producers and oil ETFs.
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Listed Oil Companies</td>
<td>Friday&#8217;s Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>)</td>
<td>2.18%</td>
<td>4.48%</td>
<td>3.47%</td>
</tr>
<tr>
<td>Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)</td>
<td>0.65%</td>
<td>-0.55%</td>
<td>-4.75%</td>
</tr>
<tr>
<td>Occidental Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>)</td>
<td>3.78%</td>
<td>-6.75%</td>
<td>-22.84%</td>
</tr>
<tr>
<td>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>)</td>
<td>3.89%</td>
<td>0.46%</td>
<td>5.21%</td>
</tr>
<tr>
<td>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>)</td>
<td>0.65%</td>
<td>17.43%</td>
<td>-3.25%</td>
</tr>
<tr>
<td>CVR Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVI#NYSE">CVI</a>)</td>
<td>4.95%</td>
<td>43.50%</td>
<td>-0.37%</td>
</tr>
<tr>
<td>Schlumberger NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>)</td>
<td>1.88%</td>
<td>-5.47%</td>
<td>-16.80%</td>
</tr>
</tbody>
</table>
</figure>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td>Listed Oil ETFs</td>
<td>Friday&#8217;s Performance</td>
<td>YTD Performance</td>
<td>One-Year Performance</td>
</tr>
<tr>
<td>United States Oil Fund LP (ARCA&#8221; USO)</td>
<td>6.89%</td>
<td>4.28%</td>
<td>4.28%</td>
</tr>
<tr>
<td>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)</td>
<td>8.65%</td>
<td>-7.44%</td>
<td>-19.06%</td>
</tr>
<tr>
<td>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)</td>
<td>2.67%</td>
<td>-1.51%</td>
<td>-6.96%</td>
</tr>
</tbody>
</table>
</figure>
See Also: <a href="https://www.benzinga.com/markets/forex/25/06/45943600/is-us-dollar-losing-its-edge-de-dollarization-and-fading-exceptionalism-raise-alarms">Is US Dollar Losing Its Edge? De-Dollarization And Fading Exceptionalism Raise Alarms</a>
Why It Matters: Despite escalating conflict, Iran has notably reduced its missile barrages on Israel, with the Institute for the Study of War (ISW) attributing this to the effectiveness of Israeli airstrikes.
Early waves on Friday and Saturday saw Iran launching 100-200 missiles per wave. However, subsequent attacks have <a href="https://www.benzinga.com/markets/equities/25/06/45944854/irans-missile-stockpile-may-be-shrinking-as-strikes-on-israel-taper-off-says-think-tank-lmt-rtx-gd-in-focus">dropped to 35-40 missiles each</a>, indicating a significant impact on Iran&#8217;s launch capacity. 
Initial estimates placed Iran&#8217;s missile stockpile at around 2,000, with an alleged plan to fire 1,000 ballistic missiles. Yet, Israeli strikes reportedly damaged or destroyed numerous launchers and silos, limiting Iran to just 200 launches. This suggests Iran may soon face difficulties sustaining its current missile attack rate.
Price Action: As of the publication of this article, Crude Oil WTI Futures were 1.32% lower at $70.47, and Brent Oil was down 1.24% to $73.31.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Monday. The SPY was up 0.50% at $599.99, while the QQQ advanced 0.56% to $529.93, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/25/06/45921978/ibm-google-emerge-as-top-investors-in-quantum-computing-with-most-patents-issued-in-2025-only-two-co" target="_blank" rel="noreferrer noopener">IBM, Google Emerge As Top Investors In Quantum Computing With Most Patents Issued In 2025: ‘Only Two Companies Seriously Investing,' Says Martin Shkreli</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. 
Image Via Shutterstock

Exxon Mobil, Chevron, Occidental Petroleum In Focus As Expert Says 'US Economy Is Far Less Sensitive To An Oil Shock' Amid Israel-Iran Conflict

U.S. stock futures slipped Thursday evening as tensions continued to flare in the Middle East, following Israel&#8217;s preemptive strike against Iran. 
Starting with the&nbsp;S&amp;P 500 Futures, which trades at 5,959.25, down 1.49%, followed by&nbsp;Nasdaq Futures&nbsp;at 21,580.25, down 1.59%, and&nbsp;Dow Jones Futures&nbsp;down 1.36%, trading at 42,404.00, at the time of writing this.
The futures markets dipped following Israel&#8217;s Defense Minister, Israel Katz declared a state of emergency, following the attack on Iran. Katz said, &#8220;Following the State of Israel's preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future,&#8221; according <a href="https://www.cnbc.com/2025/06/12/israels-defense-minister-announces-special-situation-after-israeli-attack-on-iran.html">to</a> CNBC.
On Wednesday, President Donald Trump announced that all non-emergency U.S. personnel located at its bases and embassies in the Middle East <a href="https://www.benzinga.com/markets/commodities/25/06/45897276/oil-etfs-surge-over-6-as-trump-orders-middle-east-evacuation-amid-iran-tensions-warns-region-could-be-dangerous">will be evacuated</a>, saying that it &#8220;could be a dangerous place.&#8221;
See Also: <a href="https://www.benzinga.com/news/politics/25/06/45916986/walmart-heiress-takes-on-trump-with-no-kings-ad-white-house-calls-it-burning-some-of-her-inheritance-for-a-pr-stunt">Walmart Heiress Takes On Trump With &#8216;No Kings&#8217; Ad: White House Calls It &#8216;Burning Some Of Her Inheritance For A PR Stunt&#8217;</a>
Secretary of State Marco Rubio issued a statement following Israel&#8217;s unilateral strikes, stating that the U.S. was not involved in the strikes against Iran and that the government&#8217;s top priority is protecting American troops in the region. &#8220;Let me be clear,&#8221; he said, &#8220;Iran should not target U.S. interests or personnel.&#8221;
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://t.co/aqh7QXYtiy">pic.twitter.com/aqh7QXYtiy</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1933324586214395966?ref_src=twsrc%5Etfw">June 13, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Asian markets opened lower on Friday, with Japan&#8217;s benchmark Nikkei 225 down 1.44%, trading at 37,625.30, with services, electronics, and export-oriented industries leading the decline. South Korea&#8217;s KOSPI Composite Index is following suit, down 0.97% in early-morning trade, at 2,891.73.
Crude oil prices are up 8% on Friday, trading at $73.36 a barrel, marking a steep ascent from its 52-week low of $58.4 in early May. 
Oil ETFs are once again on the ascent after hours, with the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) up 1.68%, ProShares Ultra Bloomberg Crude Oil (ARCA: UCO) up 2.75%, and finally the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) up 0.41%.
The U.S. Dollar Index (DXY) is up 0.21%, trading at 98.105 against a basket of foreign currencies, in a rather volatile trading session, as geopolitical concerns weigh.
Gold spot prices have surged 3.33%, trading at $3,435.68 per ounce, as investors pursue safe-haven assets amid rising geopolitical risks.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="192" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/12215155/Screenshot-2025-06-13-at-7.21.28-AM-1024x192.png" alt="" class="wp-image-948339" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/12215155/Screenshot-2025-06-13-at-7.21.28-AM-1024x192.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/12215155/Screenshot-2025-06-13-at-7.21.28-AM-300x56.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/12215155/Screenshot-2025-06-13-at-7.21.28-AM-768x144.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/12215155/Screenshot-2025-06-13-at-7.21.28-AM.png 1176w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
The ProShares Ultra Bloomberg Crude Oil ETF, one of the leading ETFs to track crude oil prices, has a momentum of 21.13. It has a favorable price trend in the short, medium, and long term, but how does it compare with other energy and crude oil ETFs? Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here</a> to find out. 
Read More: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/emerging-markets/25/06/45913847/the-dollar-is-crumbling-and-hedge-fund-analyst-says-a-new-global-trade-is-brewing">The Dollar Is Crumbling, And Hedge Fund Analyst Says A New Global Trade Is Brewing</a></li>
</ul>
Image Via Shutterstock

Equities

Politics

GENC

Middle East Tensions Rattle Markets: US Stock Futures Slide, Oil Jumps 8%, Gold Surges Above $3,400 After Israel Strikes Iran

Crude oil prices and the ETFs that track the commodity are surging higher amid escalating tensions in the Middle East, sending prices to a two-month high.
What Happened: On Wednesday, crude oil prices soared over 4% amid heightened tensions between the United States and Iran, prompting Washington to evacuate non-emergency personnel from its bases and embassies located across the Middle East region. 
President Donald Trump announced that U.S. personnel stationed in the Middle East were being moved out, because &#8220;it could be a dangerous place.&#8221;
Trump further expressed his doubts regarding whether the U.S. and Iran could reach a nuclear deal, saying that &#8220;they can&#8217;t have a nuclear weapon, very simple.&#8221; 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">.<a href="https://twitter.com/POTUS?ref_src=twsrc%5Etfw">@POTUS</a> on Iran: &quot;They can&#39;t have a nuclear weapon. Very simple. They can&#39;t have a nuclear weapon. We&#39;re not going to allow that.&quot; <a href="https://t.co/iCpyyYJeBh">pic.twitter.com/iCpyyYJeBh</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1932939773984878952?ref_src=twsrc%5Etfw">June 11, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/tech/25/06/45896715/meta-tiktok-challenge-eus-digital-services-act-fees-call-them-absurd-discriminatory-and-based-on-flawed-calculations">Meta, TikTok Challenge EU&#8217;s Digital Services Act Fees, Call Them &#8216;Absurd,&#8217; &#8216;Discriminatory&#8217; And Based On Flawed Calculations</a>
Brent crude futures reacted swiftly to the news, rallying 4.81% during the day and ending at $69.81 per barrel. The commodity crossed $70 on Thursday, but has since witnessed a pullback, currently trading at $69.46 per barrel, down 0.46% at the time of writing this.
Why It Matters: News of the evacuation <a href="https://www.benzinga.com/news/topics/25/06/45893521/us-embassy-evacuations-spark-middle-east-risks-and-markets-are-noticing">took a toll</a> on the markets, with the Dow Jones Industrial Average&nbsp;dropping nearly 300 points from its earlier peak of 43,115, dipping to 42,860 late in the session.
The rise in crude oil prices lifted ETFs that track the commodity, such as the United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), which soared 4.50% on Wednesday, followed by the ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) and the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), up 6.56% and 1.90%, respectively.
<figure class="wp-block-table"> 
<table class="has-fixed-layout">
<tbody>
<tr>
<td class="has-text-align-center" data-align="center">Funds &amp; ETFs</td>
<td class="has-text-align-center" data-align="center">1-Day Returns</td>
<td class="has-text-align-center" data-align="center">Year-To-Date Returns</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">United States Oil Fund LP </td>
<td class="has-text-align-center" data-align="center">+4.50%</td>
<td class="has-text-align-center" data-align="center">-2.74%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">ProShares Ultra Bloomberg Crude Oil </td>
<td class="has-text-align-center" data-align="center">+6.56%</td>
<td class="has-text-align-center" data-align="center">-15.41%</td>
</tr>
<tr>
<td class="has-text-align-center" data-align="center">SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF </td>
<td class="has-text-align-center" data-align="center">+1.90%</td>
<td class="has-text-align-center" data-align="center">-4.69%</td>
</tr>
</tbody>
</table>
</figure>
Crude oil prices are nonetheless expected to <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45135059/oil-sinks-below-57-on-opec-supply-speculation-bear-market-deepens">remain under pressure</a>, with the Organization of the Petroleum Exporting Countries or OPEC+ unwinding supply despite falling prices.
According to Benzinga&#8217;s Edge Rankings, the ProShares Ultra Bloomberg Crude Oil fund fares poorly on Momentum, ranked in the 21st percentile, with a weak price trend in the medium and long term. Click <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">here for deeper insights into the fund</a>, its peers, and competitors.
<figure class="wp-block-image size-large is-resized"><a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound"><img loading="lazy" decoding="async" width="1024" height="192" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-1024x192.png" alt="" class="wp-image-946953" style="width:920px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-1024x192.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-300x56.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM-768x144.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11235654/Screenshot-2025-06-12-at-9.26.39-AM.png 1176w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read More:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/crypto/25/06/45896615/us-recession-odds-tumble-to-23-on-crypto-betting-market-after-trump-confirms-china-trade-deal-softer-inflation-numbers">US Recession Odds Tumble To 23% On Crypto Betting Market After Trump Confirms China Trade Deal, Softer Inflation Numbers</a></li>
</ul>
Image via Shutterstock

Oil ETFs Surge Over 6% As Trump Orders Middle East Evacuation Amid Iran Tensions, Warns Region 'Could Be Dangerous'

As crude prices edge higher, several <a href="https://www.benzinga.com/etfs">oil-focused ETFs </a>are showing signs of life, offering investors a tactical opportunity amid supply tightness and improving sentiment.
Oil may have spent most of this year trapped in a range, but that hasn't stopped a few well-positioned ETFs from warming up. A recent 4% climb in Brent prices, optimism around renewed US-China trade negotiations, and signs of tightening short-term supply are giving the energy trade fresh fuel <a href="https://www.bloomberg.com/news/articles/2025-06-08/latest-oil-market-news-and-analysis-for-june-9?sref=TBDibEcD">according </a>to Bloomberg, just in time for summer.
Also Read: <a href="https://www.benzinga.com/personal-finance/management/25/06/45842911/exclusive-why-eric-lutton-says-sitting-in-cash-could-cost-you-big">EXCLUSIVE: Why Eric Lutton Says Sitting In Cash Could Cost You Big</a>
For investors looking to play this setup, here's a look at some top oil-linked ETFs gaining traction:
United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>): 
What it does: Tracks front-month WTI crude oil futures Why it matters now: USO is a barometer for short-term crude price moves. With backwardation (near-term futures priced higher than later months) back in play, the fund faces less drag from roll costs. If crude stays firm or trends upward, USO could reflect gains more efficiently than it did during contango-heavy periods.
Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)
What it does: Tracks large-cap U.S. energy stocks like ExxonMobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) and Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) Why it matters now: While XLE isn't a direct oil proxy, it&#8217;s sensitive to crude price trends via energy sector profitability. It also serves as a relatively stable option for those seeking sector exposure without the futures complexity of USO.
ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>)
What it does: Provides 2x leveraged exposure to daily WTI crude moves Why it matters now: For tactical traders, UCO offers a leveraged way to bet on oil upside during short-term rallies. With crude holding above $66 and volatility low, UCO could see amplified gains, though it's not for the risk-averse.
VanEck Oil Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OIH#NYSE">OIH</a>)
What it does: Tracks oilfield services companies like Halliburton and Schlumberger Why it matters now: Services firms benefit when producers ramp up drilling and production. If summer demand drives more activity and OPEC+ production hikes stick, OIH constituents could see revenue and margin boosts.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)
What it does: Focuses on smaller exploration and production companies Why it matters now: These firms are highly sensitive to oil prices. In a bullish cycle, they often outperform due to greater operating leverage—but that also means steeper losses during downturns.
<h2 class="wp-block-heading">Why Oil Is Moving Now</h2>
Brent crude is holding above $64 after a strong 4% gain last week, lifted by renewed optimism around U.S.-China trade talks, with negotiators meeting in London to dial down geopolitical friction that has weighed on global growth.
But crude's rally isn't just about diplomacy. Supply signals are tightening, too. U.S. futures are in backwardation, a bullish curve structure that points to stronger near-term demand. Meanwhile, volatility gauges are near their lowest since April (VIX is around 17), suggesting markets are stabilizing.
Still, <a href="https://www.bloomberg.com/news/articles/2025-06-08/latest-oil-market-news-and-analysis-for-june-9">crude </a>is down 15% year-to-date, and the rally remains fragile. OPEC+'s surprise production bump could cap gains, and macro risks, from softening Chinese demand to election-season volatility in the U.S., still lurk.
<h2 class="wp-block-heading">Final Takeaway</h2>
ETF investors need to weigh short-term tailwinds like trade optimism, summer driving season, tight supply, against longer-term risks. With spot signals flashing green, now may be a time to nibble at energy exposure. But keep your stop-losses tight and your macro radar on.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/markets/commodities/25/06/45842761/silver-just-shattered-a-14-year-ceiling-could-50-be-next">Silver Just Shattered A 14-Year Ceiling &#8211; Could $50 Be Next?</a></li>
</ul>
Photo: Shutterstock

Specialty ETFs

These 5 Oil ETFs Can Ride The Summer Demand Wave Amid Trade Talk Tailwinds

Drillers are packing up their gear, and investors should be paying attention, especially those invested <a href="https://www.benzinga.com/money/best-oil-stocks">in oil stocks</a>.
According to the latest Baker Hughes <a href="https://rigcount.bakerhughes.com/static-files/02aaefec-4ede-4ded-bcbb-de2c28d3e93a">report</a>, the number of <a href="https://rigcount.bakerhughes.com/intl-rig-count">international oil rigs</a> (excluding North America) fell by six rigs in May to 653, marking the lowest count in two decades outside of the COVID-19 pandemic collapse. 
That's not just a statistic, it's a potential signal of tighter oil supply ahead.
Read Also: <a href="https://www.benzinga.com/markets/25/05/45580812/trump-may-want-a-recession-market-observers-say-it-serves-his-economic-agendalower-rates-inflation-and-trade-deficit">Trump May &#8216;Want&#8217; A Recession: Market Observer Says It Serves His Economic Agenda—Lower Rates, Oil Prices, And Trade Deficit</a>
<h1 class="wp-block-heading">Fewer Rigs, Supply Squeeze, Price Boost</h1>
Fewer rigs today often mean lower production tomorrow, especially when it comes to long-lead international projects. With global demand holding steady — and OPEC+ keeping barrels off the market — this dip in drilling activity could tilt the oil market toward another supply squeeze.
For investors, this backdrop favors upstream oil producers that can operate efficiently, maintain capital discipline and generate strong cash flow even when rigs are idled.
Diamondback Energy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) is a textbook example. Despite plans to drop three rigs in the second quarter due to soft prices, its focus on the Permian Basin, industry-leading cost structure and resilient profitability — net income rose 7% from 2014 to 2023 despite falling oil prices — makes it a standout.
Coterra Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTRA#NYSE">CTRA</a>) is also dialing back rig activity in the Permian but brings a diversified mix to the table, thanks to its Marcellus shale gas assets. That combo helps cushion the company against crude price volatility while continuing to deliver shareholder returns.
EOG Resources Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>) remains the shale innovator to watch. With top-tier assets in the Permian and Eagle Ford, EOG's commitment to per-well recoveries, capital efficiency and data-driven development makes it well-suited to thrive in a post-drilling-boom world.
And don't count out Occidental Petroleum Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) — Warren Buffett certainly hasn't. Its deep Permian presence and focus on carbon capture and enhanced oil recovery position it for both near-term gains and long-term relevance.
<h1 class="wp-block-heading">Energy ETFs Could See Renewed Investor Interest</h1>
Meanwhile, ETFs such as the Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) — which track large-cap and exploration and production energy stocks, respectively — could see renewed investor interest if crude prices move higher on supply-tightening signals.
For energy investors, this 20-year rig count low might just be the rallying cry.
Read Next: 
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/trading-ideas/dividends/25/06/45789249/wall-streets-most-accurate-analysts-spotlight-on-3-energy-stocks-with-over-7-dividend-yields">Wall Street&#8217;s Most Accurate Analysts Spotlight On 3 Energy Stocks With Over 7% Dividend Yields</a></li>
</ul>
Photo: Shutterstock

Long Ideas

CTRA

FANG

20-Year Low In Rig Counts Could Fire Up Oil Prices — And These Stocks

In the wake of <a href="https://www.benzinga.com/topic/opec">OPEC+&#8217;s weekend decision</a> to increase oil production quotas, <a href="https://www.benzinga.com/etfs">energy ETFs are back</a> in the spotlight—some surfing the wave of positive sentiment, others protecting against geopolitical uncertainty. As oil prices surged on the U.S.-UK trade relations and potential resolutions to the U.S.-China tariff war, ETFs tracking oil futures and energy stocks have experienced rising volume and volatility.
Also Read: <a href="https://www.benzinga.com/25/04/44799117/us-iran-talks-fuel-oil-rally-here-are-5-energy-etfs-in-the-radar">US-Iran Talks Fuel Oil Rally: Here Are 3 Energy ETFs In The Radar</a>
<ol>
<li>United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) The USO is perhaps the most direct play on crude oil prices. It tracks daily price movements of WTI futures. In the past week, USO has climbed in tandem with WTI's 3%+ rally, and daily trading volumes have surged. But with its exposure to short-term futures, the fund is vulnerable to contango risk, a drag on costs that can cut into returns when longer-dated futures are trading at a premium to near-term contracts. Investors are keen to observe whether the OPEC+ production increase smoothes the front of the curve, lowering the drag. </li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) The XOP ETF provides exposure to a basket of upstream energy companies—those that drill, explore, and produce. With CNX Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNX#NYSE">CNX</a>) and Exxon Mobil Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) among its holdings, XOP is prone to magnifying the effect of oil price volatility. The ETF advanced more than 3% following the trade deal and production news. That&#8217;s a sign of investor optimism. Exploration companies could gain from stabilized demand and more transparent global trade flows. </li>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) For the adventurous, UCO offers 2x leveraged exposure to WTI futures&#8217; daily performance. It&#8217;s become popular with short-term speculators attempting to catch news events, such as the OPEC+ output boost or US-Iran nuclear talks. While potentially profitable in robust upswings, UCO can be brutal in reversals, and thus a weapon best reserved for experienced traders. The fund advanced more than 5% on Thursday following the US-UK trade deal.</li>
</ol>
<h2 class="wp-block-heading">What&#8217;s Going On Today On The Oil Front?</h2>
As the market prices in the possibility of looser supply conditions from OPEC+ and stronger global trade relationships, oil ETFs sit in the middle of this macroeconomic tug-of-war.
OPEC+ said at the weekend it will raise its oil production quotas, speeding the rollback of previous supply cuts as part of its continuing strategy to balance market recovery with geopolitical necessities. The step, which occurs after April production slipped by a small margin due to stoppages in Venezuela, Iraq, and Libya, as discovered by a Reuters Survey, is a measure of the group&#8217;s faith in the resilience of demand as the trade environment looks up. 
In the meantime, wider macroeconomic mood has been given a significant boost by renewed momentum in global trade diplomacy. The<a href="https://www.benzinga.com/25/05/45293839/trump-starmer-strike-us-uk-trade-deal-steel-cars-beef"> just-announced U.S.-UK trade deal</a>, touted by President Trump as a &#8220;breakthrough,&#8221; is set to cut tariffs on major goods—including a major cut on UK car exports and complete removal of duties on steel and aluminum. UK Prime Minister Keir Starmer described the agreement as a &#8220;catalyst for deeper bilateral trade,&#8221; while U.S. Commerce Secretary Howard Lutnick put new opportunities for American exporters at $5 billion. The good news precedes a high-stakes meeting between <a href="https://www.benzinga.com/economics/macro-economic-events/25/05/45290148/oil-bulls-eye-rebound-as-us-china-talks-spark-hope-yardeni">U.S. Treasury Secretary Scott Bessent and China&#8217;s highest-ranking economic official</a> on May 10 in Switzerland to work out long-standing trade tensions. Collectively, these negotiations are sparking hope that a de-escalation of tariff wars can rekindle world demand, specifically for energy-intensive industries, offering a backstop of support for oil prices and commodity-linked ETFs.
While Citi Research trimmed Brent forecasts to $55 for the next three months, the firm maintained that price levels will stabilize later this year at around $60 per barrel, according to another Reuters report. That is good news for energy-themed ETFs, particularly those with less exposure to futures roll costs and more diversification throughout the oil value chain.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/05/45297474/imtm-etf-tanks-then-soars-why-global-momentum-is-making-a-comeback">IMTM ETF Tanks, Then Soars: Why Global Momentum Is Making A Comeback</a></li>
</ul>

Oil ETFs Heat Up As OPEC+ Pump-Up, US-UK Trade Deal, China Talks Fuel Rally

While crude prices continue to decline,<a href="https://www.benzinga.com/etfs" target="_blank" rel="noopener"> oil-linked ETFs</a> are not only being watched for their price action but also for the insight they provide into sentiment across various segments of the <a href="https://www.benzinga.com/topic/oil" target="_blank" rel="noopener">energy sector</a>. Two of the most heavily followed funds—United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) and SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>)—provide different perspectives on how market players are positioned on oil volatility.
United States Oil Fund
USO is intended to replicate the daily movements of West Texas Intermediate (WTI) crude oil futures. It does this mainly through holding near-month NYMEX futures contracts, and as such, it is extremely vulnerable to short-term changes in the price of oil. The ETF <a href="https://www.uscfinvestments.com/uso">owns </a>a series of front-month WTI futures contracts and rolls them over on a monthly basis. This exposes the fund to contango and backwardation, two states in the futures curve that can either drain or enhance returns independent of spot price direction.
Also Read: <a href="https://www.benzinga.com/economics/macro-economic-events/25/04/45018013/oil-drops-below-key-support-is-55-the-next-stop-for-west-texas-intermediate">Oil Drops Below Key Support: Is $55 The Next Stop For West Texas Intermediate?</a>
Through April 29, USO has dropped almost 3% as of writing, echoing weakness in crude. For the past month, its decline, at more than 14%, has intensified as Brent and WTI are on track for a bad month.
USO tends to function as a short-term tactical trading tool instead of a long-term investment tool. Its April movement indicates increasing angst regarding short-term demand destruction with trade disruptions, risk of oversupply, and macroeconomic weakness.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF
Whereas USO tracks the commodity, XOP <a href="https://www.ssga.com/us/en/intermediary/etfs/spdr-sp-oil-gas-exploration-production-etf-xop">invests </a>in an equal-weighted index of U.S. energy stocks that are engaged in upstream oil and gas production. The ETF offers diversified exposure to small- and mid-cap exploration and production (E&amp;P) companies. Its equal-weighting approach minimizes concentration risk but maximizes volatility, particularly in times of declining oil prices.
Top Holdings: CNX Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNX#NYSE">CNX</a>), Marathon Petroleum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>), and Exxon Mobil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) are among the fund&#8217;s top holdings—companies that are more exposed to commodity price fluctuations because of their relatively high-cost production and capital sensitivity.
XOP fell 0.9% Tuesday afternoon, although it has beaten USO on a relative basis over the last few weeks. That is possibly driven by a perception that equities—particularly those with solid balance sheets—can better withstand short-term price dips than the futures curve.
XOP will be ideal for investors looking for leveraged exposure to oil prices through equities when prices are moving higher. Yet, in a bear market like the current one, its small-cap bias makes it a riskier play.
Sentiment Shifts
Brent crude&nbsp;dropped&nbsp;below $63.96 a barrel on Tuesday afternoon, while West Texas Intermediate (WTI)&nbsp;was&nbsp;around $60.34—both&nbsp;<a href="https://oilprice.com/oil-price-charts/">lower&nbsp;</a>for a second&nbsp;straight&nbsp;session. Brent, which has dropped 16% year-to-date, is now set to register its biggest monthly drop&nbsp;since 2021, a reflection of&nbsp;growing&nbsp;worries&nbsp;over&nbsp;weakening&nbsp;demand and geopolitical&nbsp;uncertainty.
At the same time, <a href="https://www.bloomberg.com/news/articles/2025-04-28/latest-oil-market-news-and-analysis-for-april-29">OPEC+&#8217;s</a> hint at bringing production levels back online is exerting downward pressure on prices, with oversupply fears rising as much as the demand outlook weakens, according to Bloomberg.
Geopolitical events are further complicating matters. Negotiations between Tehran and Washington on Iran&#8217;s nuclear program have given tentative indications of progress. If diplomatic efforts result in sanctions easing, Iranian crude might return to global markets—a bearish oil price catalyst once again.
Investors in oil ETFs are also getting hit. As their prices decline, USO and XOP are experiencing increased volume as investors rethink their energy exposure in light of the increased uncertainty.
Looking forward, markets will be waiting to see economic data this week that can provide more clarity on trading conditions. Meanwhile, oil ETFs remain an important gauge of investor sentiment, capturing the fine balancing act of forces at play in the global energy market.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/04/45075953/exclusive-inside-the-bond-etf-that-thrives-in-volatility-mackay-shields-zachary-aronson-on-ho">EXCLUSIVE: Inside The Bond ETF That Thrives In Volatility—MacKay Shields&#8217; Zachary Aronson On How SECR Is Quietly Crushing It</a></li>
</ul>
Photo: Shutterstock

Oil's Slippery Slide: What USO And XOP ETFs Reveal About Energy Market Panic

President Donald Trump has expressed fury over recent remarks by Russian President Vladimir Putin suggesting Ukrainian President Volodymyr Zelenskyy should be replaced. 
What Happened: In a weekend interview, Trump said he was "very angry" and warned of economic retaliation if Russia fails to cooperate on halting the Ukraine war.
Putin proposed a transitional government for Ukraine, which would effectively push out Zelenskyy. Trump, in response, threatened to impose sweeping &#8220;secondary tariffs&#8221; on any country purchasing Russian oil, including a 25% to 50% tariff on Russian crude and related products.
Trump made Ukraine a centerpiece of his foreign policy agenda and has pushed for an end to the war. His team helped broker a partial ceasefire between Russia and Ukraine, allowing safe passage in the Black Sea and a halt on attacks targeting energy infrastructure. But tensions with Moscow remain high.
Also Read: <a href="https://www.benzinga.com/news/global/25/03/44450604/putin-prayed-for-his-friend-trump-at-church-after-assassination-attempt">Putin Prayed for &#8216;His Friend&#8217; Trump at Church After Assassination Attempt</a>
"If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia's fault — which it might not be — but if I think it was Russia's fault, I am going to put secondary tariffs on oil, on all oil coming out of Russia," Trump <a href="https://www.nbcnews.com/politics/donald-trump/trump-angry-putin-zelenskyy-iran-sanctions-rcna198729">told </a>to NBC News.
Despite previous criticism of Zelenskyy, Trump signaled he would act against Putin if diplomacy fails. He also said he plans to speak with Putin again this week. "The anger dissipates quickly… if he does the right thing," Trump said, describing their relationship as "very good."
Trump said he also "was pissed off" about Putin's comments about temporary governance and that his anger about Putin's comments had been made known to Moscow.
Trump's tariff threats echo a similar strategy he applied to Venezuela, where countries importing oil from Caracas risked U.S. trade penalties. The same could apply to top buyers of Russian oil such as China, India, Turkey, and Brazil.
Read Next
<a href="https://www.benzinga.com/news/global/25/01/43216865/putin-agrees-with-trump-ukraine-war-avoidable-if-trump-had-been-in-office" target="_blank" rel="noreferrer noopener">Putin Agrees With Trump: Ukraine War Avoidable if Trump Had Been in Office</a>
Image: Shutterstock

Trump Threatens Russian Oil Tariffs, Says He's 'Very Angry' At Putin

Officials from the U.S. and Russia have commenced discussions in Saudi Arabia. The goal of these talks is to establish a comprehensive ceasefire in Ukraine and a distinct Black Sea maritime agreement.
What Happened: These talks come on the heels of U.S. negotiations with Ukraine that took place in Saudi Arabia on Sunday. The discussions are a part of U.S. President Donald Trump&#8216;s escalated efforts to resolve the conflict that has been ongoing for three years. The U.S. delegation is spearheaded by Andrew Peek, a senior director at the White House National Security Council, and Michael Anton, a senior State Department official, reported the Reuters on Monday.
The talks primarily aim to secure a maritime ceasefire in the Black Sea to enable free shipping. Russia&#8217;s delegation features Grigory Karasin, the chair of the Foreign Affairs Committee in the upper house of parliament, and Sergei Beseda, an adviser to the Federal Security Service&#8217;s director.
Trump has expressed satisfaction with the progress of the talks and lauded Russian President Vladimir Putin&#8216;s involvement. However, major European powers remain doubtful about Putin&#8217;s readiness to make significant concessions.
The talks also aim to discuss &#8220;the line of control&#8221; between the two countries, peacekeeping, and &#8220;confidence-building measures,&#8221; including the repatriation of Ukrainian children taken by Russia.
About Ukraine honoring the terms of the Black Sea Grain Deal, Kremlin spokesman Dmitry Peskov stated, &#8220;But if you remember the initiative in its previous form, there was quite a large part of the obligations to our country that were not fulfilled last time. Therefore, this will also be on the agenda today.&#8221;
SEE ALSO: <a href="https://www.benzinga.com/general/space/25/03/44454270/crypto-tycoon-joins-forces-with-elon-musks-spacex-to-launch-first-private-space-station">Crypto Tycoon Joins Forces With Elon Musk&#8217;s SpaceX To Launch First Private Space Station</a>
Why It Matters: These discussions follow the Trump administration&#8217;s push for <a href="https://www.benzinga.com/25/03/44435337/trump-administration-pushes-for-revised-terms-to-access-ukraines-critical-resources-amid-peace-talks-report">revised terms to access </a>Ukraine&#8217;s critical resources amid peace talks. The U.S. is persuading Kyiv to agree to comprehensive terms about the ownership and control of a joint investment fund. This could potentially extend to U.S. ownership of other economic assets in Ukraine, such as nuclear power plants.
 Trump announced that the U.S. is aiming to establish agreements on rare earths and minerals globally, with a special focus on Ukraine. This initiative is part of a larger strategy to secure a peace agreement with Russia.
Following the reports of the peace talks, oil prices climbed on Monday as the Brent crude futures gained 54 cents at $72.18 a barrel by 1102 GMT. IG market strategist Yeap Jun Rong told Reuters, &#8220;&#8230;the broader demand-supply outlook still remains mixed. Ukraine-Russia ceasefire talks raise the prospects of increased Russian exports on an eventual resolution, while the OPEC+ production hike as early as April points to further supply additions.&#8221; 
These developments, along with U.S. sanctions on Iranian exports, make energy ETFs a key area of investor interest. iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) climbed 0.75% over the past month, while SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) dropped 2.57% during the same period. 
<ul>
<li>READ MORE: <a href="https://www.benzinga.com/markets/forex/25/03/44454065/india-china-markets-gain-in-asia-europe-mixed-dollar-eases-global-markets-today-while-us-slept">India, China Markets Gain In Asia, Europe Mixed; Dollar Eases &#8211; Global Markets Today While US Slept</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
<a rel="noreferrer noopener" href="https://www.benzinga.com/quote/xop" target="_blank"></a>

iShares Dow Jones US Energy Sector Index Fund

Oil Rises As US And Russia Begin Talks In Saudi Arabia For Ukraine Ceasefire, Black Sea Deal

Oil prices fell 1% Tuesday with geopolitical change and economic uncertainty contributing to market expectations. 
<a href="https://www.benzinga.com/news/global/25/03/44384160/oil-prices-slip-energy-stocks-pause-as-trump-putin-call-signals-ukraine-ceasefire-progress">Diplomatic talks between</a> U.S. President Donald Trump and Russian President Vladimir Putin encouraged the prospect of a Ukraine ceasefire that might relax sanctions on Russian fuel exports, according to Reuters. But analysts warn it will take time for a meaningful recovery in Russian oil output. While this is, at least in part, due to the effects of Trump&#8217;s trade tariffs on energy demand, there are a number of other factors coming into play. These combine to create a complicated energy scenario, making <a href="https://www.benzinga.com/etfs">energy ETFs</a> a focal point of investor interest.
<h1 class="wp-block-heading">How Energy ETFs Fit Into The Picture</h1>
ETFs provide exposure to the energy sector with risk management against changing oil prices and geopolitical events. Here&#8217;s how various kinds of energy ETFs could be impacted:
Diversified Energy ETFs: These offer diversified exposure to exploration, production, refining and transport, enabling investors to control volatility. Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) and the iShares U.S. Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYE#NYSE">IYE</a>) are options to consider, with expense ratios of 0.08% and 0.4%, respectively.
Exploration and Production (E&amp;P) ETFs: Concentrated on extracting oil and gas, these ETFs can experience volatility due to changes in supply and demand. Investors may look at the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) and the iShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>). The ETFs carry an expense ratio of 0.35% and 0.4%, respectively.
Midstream ETFs: Comprising less price-volatile components, these may be rewarded with higher oil transport and storage requirements. Examples include the Alerian MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMLP#NYSE">AMLP</a>) and the Global X MLP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPA#NYSE">MLPA</a>), with expense ratios of 0.85% and 0.45%, respectively.
Also Read: <a href="https://www.benzinga.com/25/03/44217245/us-shale-industry-set-to-boost-oil-output-despite-falling-prices-says-energy-secretary-the-economics-of-shale-dont-work-says-expert">US Shale Industry Can Deliver Trump&#8217;s Pledge For &#8216;Drill, Baby, Drill&#8217; Despite Falling Prices, Says Energy Secretary: &#8216;The Economics Of Shale Don&#8217;t Work,&#8217; Says Expert</a>
<h1 class="wp-block-heading">Contributing Factors To Slowing Oil Prices</h1>
• If sanctions against Russia are relaxed, its crude output — presently at 9.2 million barrels per day (bpd), from 10.6 million bpd in 2016 — might rise. But significant supply shifts might not be immediate, per the Reuters report.
• Trump's tariffs are pressuring global growth. The OECD warns of slower growth, while Wood Mackenzie cut its 2025 Brent crude forecast by $7 to $73 per barrel, according to Reuters.
• OPEC+ is going ahead with its scheduled April output increase, pumping additional supply into the market.
• Middle East uncertainty is another underpinning factor in oil prices. Trump&#8217;s military intervention in support of Iran-aligned Houthis in Yemen and Israeli airstrikes on Gaza inject volatility into the global oil supply.
• Chinese and German economic stimulus may be able to sustain oil demand, offsetting some of the pressure on prices lower.
• This week, the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA) will report on oil inventories. Reuters reported that a 0.9 million barrel build is expected by analysts, which may have an impact on short-term price action.
Oil prices continue to be very volatile based on geopolitical and economic reasons. Energy ETFs provide investors with the means to ride out these changes, managing risk while achieving opportunity. Monitoring worldwide trends and inventory reports will be paramount in making smart investment decisions.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/03/44382780/3-best-performing-semiconductor-etfs-since-last-gtc-and-why-this-time-is-different">3 Best-Performing Semiconductor ETFs Since Last GTC And Why This Time Is Different</a></li>
</ul>
Photo: Shutterstock

AMLP

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

MLPA

Oil Prices Ease: What It Means For Energy ETFs, Investors

The Trump administration is exploring a strategy to halt and examine Iranian oil tankers at sea as part of an international agreement aimed at curbing the spread of <a href="https://www.benzinga.com/25/02/43480859/trump-confirms-maximum-economic-pressure-on-iran-calls-chinas-tariff-retaliation-fine">weapons of mass destruction</a>.
What Happened: According to Reuters, Trump officials are considering enabling allied nations to stop and inspect vessels passing through critical maritime routes such as Asia's Malacca Strait.
Such actions could delay crude deliveries to refiners and potentially damage the reputations of those involved in facilitating these trades.
The administration is evaluating whether these sea inspections could be conducted under the Proliferation Security Initiative (PSI), a U.S.-led program launched in 2003 with the participation of over 100 countries to prevent the movement of weapons of mass destruction. 
See Also: <a href="https://www.benzinga.com/markets/equities/25/03/44157043/jim-cramer-doubles-down-on-crowdstrike-despite-drop-analysts-who-were-so-negativehad-it-wrong">Jim Cramer Doubles Down On CrowdStrike Despite Drop: &#8216;Analysts Who Were So Negative…Had It Wrong&#8217;</a>
Why It Matters: Opponents of Tehran's oil revenue say it supports nuclear proliferation as well as terrorism.
However, past attempts to seize Iranian oil have sparked retaliation from Tehran. In 2023, Iran seized foreign ships—one chartered by Chevron (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>)—after the U.S. attempted to intercept Iranian oil cargoes.
&#8220;You don't have to sink ships or arrest people to have that chilling effect that this is just not worth the risk,&#8221; said one source, emphasizing that delivery delays could sow uncertainty in illicit trade networks. 
Analysts warn that the longer sanctions remain in place, the more Iran and its oil buyers will find ways to circumvent them.
With Iran's oil revenues largely tied to exports to China, any prolonged disruption could have significant economic impacts. 
<h2 class="wp-block-heading">ETFs To Watch</h2>
During pre-market hours on Thursday, <a href="https://pro.benzinga.com">Benzinga Pro</a> showed: 
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) fell by 0.17%,</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) dropped 2.58%,</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) decreased by 0.39%, and</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 0.28% drop,</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/forex/25/03/44161314/us-stocks-likely-to-open-lower-after-wednesdays-blip-be-patient-but-be-ready-to-act-says-analyst-as-market-uncertainties-can-create-opportunities">US Stocks Likely To Open Lower After Wednesday&#8217;s Blip: &#8216;Be Patient, But Be Ready To Act,&#8217; Says Analyst As Market Uncertainties Can Create &#8216;Opportunities&#8217;</a></li>
</ul>
Image: Shutterstock

Government

OILU

Trump Administration Weighs Sea Inspections Of Iranian Oil Tankers

Editor's Note: This article has been updated to clarify that Elliott Investment Management purchased convertible senior notes of Wolfspeed and MicroStrategy.
Elliott Investment Management made several portfolio moves in the fourth quarter, closing multiple options positions and shaking up the activist firm&#8217;s <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43811538/5-top-tech-stocks-hedge-funds-have-been-bullish-on-in-q4-hint-its-not-nvidia">technology exposure</a>.
According to a new&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1791786/000101359425000294/xslForm13F_X02/primary_doc.xml" target="_blank" rel="noreferrer noopener">13-F</a>&nbsp;filing with the U.S. Securities and Exchange Commission, Elliott added the following new positions in the fourth quarter:
<ul>
<li>Wolfspeed Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>) 0.25% and 1.875% convertible senior notes</li>
</ul>
<ul>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) put options</li>
</ul>
<ul>
<li>SPDR Select Sector Fund Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) put options</li>
</ul>
<ul>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) put options</li>
</ul>
Here's a look at all of the positions Elliott added to during the fourth quarter:
<ul>
<li>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) increased by 369%</li>
</ul>
<ul>
<li>MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) increased convertible senior notes by 200%</li>
</ul>
<ul>
<li>CorMedix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRMD#NASDAQ">CRMD</a>) increased by 85%</li>
</ul>
<ul>
<li>HDFC Bank Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDB#NYSE">HDB</a>) increased by 6%</li>
</ul>
Here&#8217;s a look at all of the positions Elliott closed during the fourth quarter:
<ul>
<li>Catalent Inc (CTLC) </li>
</ul>
<ul>
<li>Cardinal Health Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAH#NYSE">CAH</a>)</li>
</ul>
<ul>
<li>Unity Software Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/U#NYSE">U</a>)</li>
</ul>
<ul>
<li>BILL Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BILL#NYSE">BILL</a>)</li>
</ul>
Elliott closed out of calls in several names including Arm Holdings, American Airlines and Alaska Air Group. The firm also closed multiple put positions including Equinix, Hyatt Hotels and Host Hotels.
Here's a look at all of the positions Elliott trimmed during the fourth quarter:
<ul>
<li>ICON Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICLR#NASDAQ">ICLR</a>) decreased by 62%</li>
</ul>
<ul>
<li>RingCentral Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RING#NYSE">RING</a>) decreased by 55%</li>
</ul>
<ul>
<li>NRG Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) decreased by 50%</li>
</ul>
<ul>
<li>Confluent Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CFLT#NASDAQ">CFLT</a>) decreased by 37%</li>
</ul>
<ul>
<li>Southwest Airlines Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) decreased by 2%</li>
</ul>
The above information does not include call or put options that were added to or trimmed&nbsp;during the quarter.
This information was gathered using comparison tools from&nbsp;<a href="https://13f.info/13f/000101359425000294/compare/000101359424000968" target="_blank" rel="noreferrer noopener">13f.info</a>.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/25/02/43811538/5-top-tech-stocks-hedge-funds-have-been-bullish-on-in-q4-hint-its-not-nvidia">5 Top Tech Stocks Hedge Funds Have Been Bullish On In Q4 (Hint: It&#8217;s Not Nvidia)</a></li>
</ul>
This illustration was generated using artificial intelligence via Midjourney.

Hedge Funds

BILL

CFLT

CRMD

ICLR

MSTR

NVDA

RING

WOLF

Elliott Investment Management Bets Against Nvidia In Q4 (CORRECTED)

President Donald Trump, while hosting a White House meeting with Jordan&#8217;s King Abdullah at the White House Tuesday, reiterated his threat that the U.S. will take control of the Gaza Strip and move the nearly two million Palestinians living there to either Jordan <a href="https://www.benzinga.com/topic/gaza">or Egypt or somewhere</a>.
Asked whether the U.S. would cut billions in financial aid to the two countries if they refused to accept the transfer of Palestinians, Trump sounded confident that Jordan and Egypt would carry out his wishes.
"I don't have to threaten that. I do believe we're above that," Trump said, contradicting his previous suggestion that holding back aid was a possibility.
<h2 class="wp-block-heading">How Will The US Attain Gaza?</h2>
Trump said the US could come to control Gaza without committing any money. 
&#8220;We are not going to buy Gaza&#8230;we are going to take it and cherish it,&#8221; Trump said. &#8221; It will bring peace to the Middle East. It is going to be a tremendous thing and put a lot of people to work.&#8221; 
Speaking in broad strokes, Trump insisted that there has been overwhelming support for his plan to turn Gaza into a resort, though in fact most world leaders <a href="https://www.benzinga.com/news/25/02/43503385/trumps-gaza-plan-for-seaside-resort-faces-global-pushback">criticized his plan</a> when it was first announced.
Trump suggested that the redeveloped area could have new hotels, office buildings and houses and "and we'll make it exciting." 
Trump then waxed on about what a successful real estate magnate he is. "I can tell you about real estate. They're going to be in love with it," he said.
<h2 class="wp-block-heading">King Abdullah, What Say You? </h2>
When pressed by reporters specifically as to whether he agreed to the transfer of Palestinians from Gaza, King Adbullah said that more talks will be held soon with Egypt to discuss the issue. Egypt has also condemned Trump&#8217;s plan. 
The King said that Jordan would need to take into consideration how it could or would be able to take Palestinians into his country. The kingdom already shelters 700,000 Syrian refugees and lacks the oil wealth of its neighbors, making continued U.S. aid crucial. Jordan receives nearly $2 billion in foreign aid to Jordan, which contributes at least 42% to the country&#8217;s total economy
&#8220;This is something that we as Arabs will discuss later and talk about the options,&#8221; King Abdullah said. 
Two Palestinians from Michigan told Benzinga that they thought the King played his cards close to his chest and that deferring to upcoming talks with Egypt &#8220;was a good idea. He [Trump] already walked back the threat of cutting aid to both Egypt and Jordan.&#8221;
Analysts from various outlets agreed that King Abdullah held back in the short press briefing during which Trump did most of the talking. Though ahead of Tuesday's meeting, King Abdullah had reaffirmed his commitment to a two-state solution and the need for a "just and comprehensive peace" in the region. 
In terms of Israel&#8217;s plan to annex the mostly Palestinian West Bank, Trump said, &#8220;That&#8217;s going to work out.&#8221;
Abdullah also announced that Jordan was intending to bring to Jordan 2,000 Palestinian children from Gaza in need of cancer treatment, which Trump said was a beautiful thing.
<h3 class="wp-block-heading">ETFs To Watch</h3>
According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, oil ETFs were in the green at last check Tuesday:
<ul>
<li>ProShares Ultra Bloomberg Crude Oil (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UCO#NYSE">UCO</a>) is up by 2.65%</li>
<li>United States Oil Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) is up by 1.25%</li>
<li>SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) is up by 0.9%</li>
<li>MicroSectorsTM Oil &amp; Gas Exploration &amp; Production 3X Leveraged ETNs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILU#NYSE">OILU</a>) saw a 2.94% uptick</li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/25/02/43621302/justin-trudeau-slams-unacceptable-us-tariffs-after-trump-imposes-25-levy-on-metal-imports-canadians-will-stand-up-strongly-and-firmly-if-we-need-to">Justin Trudeau Slams &#8216;Unacceptable&#8217; US Tariffs After Trump Imposes 25% Levy On Metal Imports : &#8216;Canadians Will Stand Up Strongly And Firmly If We Need To&#8217;</a></li>
</ul>
Palestinian refugees in Gaza: Shutterstock

Trump Says We Will 'Take Gaza' And 'Cherish It' In White House Meeting With Jordan's King Abdullah

Trump's first day in office brought a wave of executive orders targeting immigration, energy, social policies, and announcing the withdrawal from global agreements like the Paris Climate Accord and <a href="https://www.benzinga.com/topic/donald-trump">the World Health Organization. </a>
Trump also pledged to raise tariffs up to 25% on both Canada and Mexico starting Feb. 1, but fell short of announcing universal tariffs on all imports.
Following Monday&#8217;s market closure for Martin Luther King Jr. Day, investors began assessing how Trump's new policy measures could impact sectors across the board. 
Gold miners and defense stocks outperformed, while solar energy companies were among the hardest hit.
<h3 class="wp-block-heading">Wall Street&#8217;s Winners And Losers After Trump&#8217;s Day 1</h3>
Gold miners were among the standout performers, amid rising trade fears between the U.S. and Canada. 
The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) climbed 2.6% by 1:30 p.m. ET Tuesday. Leading gains were Harmony Gold Mining Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMY#NYSE">HMY</a>), up 4.3% and Endeavour Silver Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXK#NYSE">EXK</a>), up 3.1%.
&#8220;While President Trump's Inauguration Day policy announcements on tariffs were more benign than expected, we continue to expect the White House to increase tariff rates on autos and imports from China, and we see other tariff proposals as a risk,&#8221; Goldman Sach&#8217;s analyst Elsie Peng wrote in a note Tuesday.
Defense stocks also surged as Trump's policies emphasized national security and border protection declaring a &#8220;national emergency&#8221; at the southern border with Mexico. The iShares U.S. Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITA#NYSE">ITA</a>) rose 3.3%.
Other notable movers included the U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>), up 2%, and the SPDR S&amp;P Metals &amp; Mining ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XME#NYSE">XME</a>), which rose 1.6% as investors bet on increased demand for industrial materials.
Oil and gas exploration companies saw declines despite <a href="https://www.benzinga.com/government/regulations/25/01/43097430/trumps-drill-baby-drill-era-begins-oil-prices-tumble-us-energy-stocks-edge-up">Trump's "Drill, Baby, Drill"</a> push to unleash U.S. energy resources. The SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) dropped 1.1%, signaling concerns about potential oversupply.
Clean energy and solar stocks, however, suffered from Trump's decision to halt offshore wind leasing and withdraw the U.S. from the Paris Climate Accord. 
The Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) fell 3.1%, with losses from Daqo New Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DQ#NYSE">DQ</a>), down 6.7%, and First Solar Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>), which dropped 5.4%. The Invesco WilderHill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) slipped 1%.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/01/43103527/mexican-peso-canadian-dollar-slide-as-trump-threatens-25-tariffs-expert-eyes-price-hikes-on-typical-us-breakfast">Mexican Peso, Canadian Dollar Slide As Trump Threatens 25% Tariffs, Economist Eyes Price Hikes On &#8216;Typical US Breakfast&#8217;</a></li>
</ul>
Photo: Shutterstock

Large Cap

Mid Cap

Regulations

Econ #s

FSLR

Market Vectors ETF Trust Market Vectors Gold Miners

iShares Dow Jones US Aerospace & Defense Index Fund

JETS

PowerShares Exchange Traded Fund Trust WilderHill Clean Energy Portfolio

Trump's First Day Sends Gold Miners, Defense Stocks Soaring, Solar Sliding

Donald Trump wasted no time in his return to the White House, signing a flurry of executive orders, and, most notably, declaring <a href="https://www.benzinga.com/government/regulations/25/01/43086509/trump-unleashes-executive-orders-on-border-security-oil-drilling-domestic-manufacturing-in-first-acts-as-president">a national energy emergency. </a>
During his inauguration speech on Monday, he reaffirmed his commitment to fossil fuels, pledging to &#8220;drill, baby, drill&#8221; and revoke the electric vehicle mandate. 
&#8220;The inflation crisis was caused by massive overspending and escalating energy prices. And that is why today I will also declare a national energy emergency. We will drill, baby, drill,&#8221; Trump said. 
Trump also announced his intent to withdraw the U.S. from the Paris Climate Accord, calling wind turbines "ugly" and reiterating his policy against renewable energy expansion. His focus is clear: expand drilling, restore the Strategic Petroleum Reserve and flood global markets with U.S. oil and gas.
Oil markets are already reacting, but will this push for American energy dominance send crude prices soaring or lead to an oversupply crisis?
<h3 class="wp-block-heading">What Happens To Oil Prices?</h3>
The immediate impact of Trump's pro-drilling stance on oil markets has been strong, with traders already reassessing their outlooks on crude prices. 
The U.S. benchmark West Texas Intermediate crude – as tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) – tumbled by 2.6% during morning trading on Tuesday, heading for a third straight session of losses. 
"Mr. Trump's full-throated yell for U.S. producers to: ‘Drill, baby, drill!' is not new. And it's perfectly logical that prices should fall at the prospect of increased supply. But producers are highly price-sensitive, and there comes a time/price where it's uneconomical to raise production," commented David Morrison, senior market analyst at Trade Nation.
&#8220;Day 1 executive orders in these areas are expected to be followed by further action in the coming days and weeks, with Trump set to test the limits of presidential authority to pursue an agenda that aims to unravel Biden's energy and climate policies,&#8221; wrote Energy Intelligence in a note Tuesday. 
David Goldman, head of trading at Novion said Trump's policy shift "is unlikely to have any significant impact in the short term but may have bearish repercussions in the long term."
Goldman highlighted that a sharp increase in U.S. production, particularly if global demand slows due to the ongoing transition to renewable energy, could weigh on prices. "Increased production without sufficient export infrastructure risks bottlenecks, while protectionist trade measures could stifle international cooperation and reduce market efficiency."
<h3 class="wp-block-heading">Energy Stocks See A Small Lift</h3>
Oil and gas stocks saw modest gains in premarket trading Tuesday as investors weighed the potential for increased drilling activity. 
The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), which tracks major oil companies, was up 0.1% during premarket trading, while the SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>) saw similar gains.
Among individual stocks:
<ul>
<li>Halliburton Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>) rose 1.67% </li>
<li>Texas Pacific Land Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPL#NYSE">TPL</a>) gained 1.04%</li>
<li>Schlumberger Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLB#NYSE">SLB</a>) climbed 1.04% to $44.03</li>
<li>Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>) increased 0.96% to $30.60</li>
<li>Baker Hughes Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) moved 0.90% higher to $46.96</li>
</ul>
Smaller energy players saw sharper moves, with Gulfport Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GPOR#NYSE">GPOR</a>) surging 9.13% to $213.25 and Sable Offshore Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOC#NYSE">SOC</a>) jumping 5.20% to $25.77.
Read now: 
<ul>
<li><a href="https://www.benzinga.com/markets/futures/25/01/43093520/us-stocks-set-to-open-on-a-positive-note-as-trumps-second-white-house-term-kicks-off-tesla-apple-netflix-among-stocks-in-focus">US Stocks Set To Open On A Positive Note As Trump&#8217;s Second White House Term Kicks Off: Tesla, Apple, Netflix Among Stocks In Focus</a></li>
</ul>
Photo Shutterstock

Economics

GPOR

Trump's 'Drill, Baby, Drill' Era Begins: Oil Prices Tumble, US Energy Stocks Edge Up

Oil prices are heating up, and so are the stocks of <a href="https://www.benzinga.com/topic/energy">major energy companies</a>. 
Shares of Chevron Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>), Occidental Petroleum (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), and ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) were trading in the green at the last check on Friday. The rally follows a Reuters report suggesting the U.S. is preparing its most <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/42919047/oil-nears-80-as-us-prepares-new-russia-sanctions">stringent sanctions yet</a> against Russian oil.
These sanctions, expected to target 180 vessels, major <a href="https://www.benzinga.com/topic/oil?_gl=1&#x2A;1aeuuae&#x2A;_gcl_au&#x2A;MTQ3Nzg4MTMxMi4xNzM1NTczMTA3&#x2A;_ga&#x2A;R1MxLjEuMTczNjUyMjc2NC4xLjEuMTczNjUyMjg4Ni4wLjAuMA..&#x2A;_ga_V7ZK73W7N0&#x2A;MTczNjUyMDk1NC40Ni4xLjE3MzY1MjY3NDYuMC4wLjA.">oil </a>companies, and top executives, have already pushed oil prices to $80 per barrel — a level not seen since October 2024. 
Traders are responding to the anticipated disruption in global oil supply, and some ETFs with oil and energy exposure stand to reap the benefits.
<h3 class="wp-block-heading">What This Means For ETFs</h3>
<ul>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>) was trading 3.73% higher as of 12.13 P.M. EST</li>
<li>The Invesco DB Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBO#NYSE">DBO</a>) rose about 3.84%. </li>
<li>The United States 12 Month Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USL#NYSE">USL</a>) posted a 2.21% gain.</li>
<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NYSE">XOP</a>), with an expense ratio of 0.09% and a 91.26% exposure to the Oil, Gas &amp; Consumable Fuels make it a good bet for investors of oil-focused ETFs. The portfolio includes Exxon Mobil, Chevron and ConocoPhillips.</li>
<li>Vanguard Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VDE#NYSE">VDE</a>) has an expense ratio of 0.10% and like XOP, Exxon Mobil, Chevron and ConocoPhillips enjoys significant weightage in the fund.</li>
</ul>
<h3 class="wp-block-heading">Geopolitics and Market Dynamics</h3>
Sanctions on Russia — one of the world's largest oil producers — are expected to tighten supply. Prices are expected to go higher. Ongoing reduction in U.S. crude stockpiles, particularly at the Cushing, Oklahoma hub, as reported by Reuters, adds to the pressure.
While tighter supplies drive prices upward, concerns about demand persist. China&#8217;s fuel oil imports are likely to fall early 2025 thanks to a hike in oil import tax from Jan. 1. 
Weaker demand from China, one of the biggest crude oil importers, could weigh on prices in the longer term. 
See Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42340255/opec-extends-oil-output-cuts-to-late-2026-what-it-means-for-markets">OPEC+ Extends Oil Output Cuts To Late 2026: What It Means For Markets</a></li>
</ul>
Photo: Shutterstock

Oil Stocks Rally On Anticipation Of Stricter Russian Sanctions: Here's How ETFs Are Reacting

The United States announced the toughest sanctions yet on <a href="https://www.benzinga.com/topic/oil">Russia's oil industry</a> on Friday.
What To Know: The news pushed global oil prices up by 3%, nearing $80 per barrel. The sanctions are part of Washington&#8217;s ongoing measures to penalize Russia for its invasion of Ukraine, aiming to disrupt oil exports to major buyers like India and China.
The measures include the blacklisting of 183 vessels involved in Russian energy exports, which could significantly disrupt the flow of oil. Previously, a Financial Times <a href="https://www.ft.com/content/7c0981bb-9b7a-4737-8f3f-65325a1d768a">analysis </a>showed that the 54 tankers sanctioned by the U.S. were forced to carry dramatically less oil due to heightened risks, hinting at potentially larger ramifications this time.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42913622/dollar-soars-to-27-month-highs-30-year-yields-hit-5-stocks-tumble-jobs-report-oil-spike-darken-feds-interest-rate-cut-hopes">Dollar Soars To 27-Month Highs, 30-Year Yields Hit 5%, Stocks Tumble As Jobs Report, Oil Spike Darken Fed&#8217;s Interest Rate Cut Hopes</a>
Key targets include Russian oil giants Gazprom Neft and Surgutneftegaz, along with insurers Ingosstrakh and Alfastrakhovanie, which cover a significant portion of Russian oil shipments, Reuters reports. This move could intensify challenges for Russia, which has shifted oil exports to Asia since Western sanctions in 2022 curtailed its European markets.
The U.S. Treasury noted that the UK would coordinate and apply sanctions on Gazprom Neft and Surgutneftegaz alongside Washington, FT reports.
The sanctions also target active Russian liquefied natural gas (LNG) facilities and foreign organizations that support Russia's oil exports, further expanding the scope of penalties.
The sanctions, issued just days before President-elect Donald Trump takes office, create a challenge for his administration. Trump, who campaigned on quickly ending the war between Russia and Ukraine, has expressed skepticism about imposing additional sanctions, FT reports.
In September, he stated, &#8220;I want to use sanctions as little as possible.&#8221; Reversing these measures could put him at odds with Congress, where Republican members had been urging President Joe Biden to crack down on Russian energy revenues.
What Else: To adapt, Russia has relied on its fleet of tankers and domestic insurance providers. However, Indian refiners indicated they would avoid tankers or insurers under U.S. sanctions.
Per the Reuters report, India refining sources suggest Russia may further discount crude prices to below $60 to align with Western price caps and retain market access.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42912480/us-economy-adds-256000-payrolls-in-december-as-tight-labor-market-tops-forecasts-dollar-treasury-yields-spike">US Economy Adds 256,000 Payrolls In December, Tight Labor Market Tops Forecasts: Dollar, Treasury Yields Spike</a>
Price Action From Key Oil ETFs:
<ul>
<li>Shares of United States Oil Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/USO#NASDAQ">USO</a>) are up 4.8% to $80.99.</li>
<li>Shares of Energy Select Sector SPDR Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NASDAQ">XLE</a>) are up 1.2% to $89.08.</li>
<li>Shares of SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/XOP#NASDAQ">XOP</a>) are up 2% to $140.40.</li>
</ul>
Image created using photos from Shutterstock.

Oil Surges As US Unleashes Toughest Sanctions On Russia's Energy Sector

SPDR Oil & Gas Exploration and Production ETF

Comments

SPDR S&P Oil & Gas Explor & Product

Actualités

Dernières nouvelles pour SPDR S&P Oil & Gas Explor & Product (ARCA:XOP)

Notizie

PARTENAIRE / CONTRIBUTEUR

BENZINGA MONDIAL