Economic Concerns Pull Oil Prices Down

By

Updated

Economic concerns and oil prices

On March 22, at 11:48 AM EDT, US crude oil May futures fell 2.2% from their previous close. Concerns surrounding a slowdown in Europe’s powerhouse have dragged US crude oil prices near the lower limit of our price forecast. Oil is a growth-driven asset. In March, Germany’s PMI was at its lowest level since June 2013. Moreover, the index contracted for the third straight month.

Article continues below advertisement

Impact on ETFs

The US crude oil price limits we discussed earlier could be important for oil-tracking ETFs like the ProShares Ultra Bloomberg Crude Oil ETF (UCO) and the United States 12-Month Oil ETF (USL). In the trailing week, US crude oil May futures rose 1.8%, UCO rose 3.5%, and USL rose 1.3%.

Advertisement

More From Market Realist