Crude oil price movement
WTI (West Texas Intermediate) crude oil futures contracts for May delivery rose by 3.9% and settled at $41.45 per barrel on March 22, 2016. Brent crude oil futures also rose by 0.6% to $41.79 per barrel. Oil prices rallied due to the terrorist attack in Brussels. In contrast, the United States Oil Fund (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) fell on March 22, 2016. USO and UCO fell by 0.5% and 1%, respectively, on the same day. The SPDR S&P 500 ETF (SPY) fell slightly by 0.03% to $204.6.
On March 22, 2016, around 30 people died due an explosion at the check-in area at the Brussels International Airport terminal. There was another blast at the city’s metro station. More than 200 people have been injured. The Islamic State of Iraq and Syria claims to be the mastermind behind the terrorist attack. Flights to and from Brussels International Airport have been canceled. The airport will open on March 23, 2016. The security levels have been raised. Oil prices continued their bullish momentum due to optimism from oil producers’ meeting and expectations of slowing US crude oil production. Read more about the US crude oil inventory and gasoline and distillate inventories in Part 5 and Part 6 of this series.
Brent crude oil prices have rallied almost 50% since the lows in February 2016. US crude oil prices rallied more than 40% over the same period. Read more about the bullish and bearish drivers in the next two parts of this series. The recent crude oil bull market benefits crude oil producers like W&T Offshore (WTI), Contango Oil & Gas (MCF), Denbury Resources (DNR), and Cobalt International Energy (CIE). The ups and downs in oil and gas prices impact ETFs like the SPDR S&P Oil & Gas Equipment & Services ETF (XES), the VelocityShares 3x Inverse Crude Oil ETN (DWTI), and the Direxion Daily Energy Bull 3x Shares ETF (ERX).