United States 12 Month Oil Fund,

USL

Market cap $59M

As Europe confronts a new energy crisis, we explore key measures to strengthen energy security beyond simply lowering energy bills, and the potential implications for business leaders. Europe now relies on a wider range of suppliers, but paradoxically, the new geopolitical situation still leaves Europe vulnerable.

Crude oil stocks stand to gain from surging prices and supply chain disruptions, offering investors defensive, short-term tactical buying opportunities. The goal of defensive trading is to preserve capital and mitigate risk until more favorable market conditions return. Explore the ‘Strong Buy' recommendations in this article, which are up an average +60% YTD, trade at a discount, and offer strong fundamentals that may benefit from the crude oil trade.

The conflict in Iran resulted in unprecedented volatility in the oil market. Crude oil future contracts soared well above $100 per barrel in the immediate aftermath before easing back.

Crude oil outlook turns cautious as oversupply risks persist. Track USO, DBO & USL for potential opportunities amid geopolitical jitters.

Global oil production has reached unprecedented levels, creating a widening gap between supply and demand. Non-OPEC+ countries, particularly those in the Americas, drive most expansion.

Crude oil was down 4% Sunday night, as OPEC once again announced a production increase, a move by OPEC that will eventually help US inflation, and give the Fed another reason to lower the fed funds rate. The 10-year annual return on the TLT is still negative, and has been for a year or so.

Oil prices regain momentum at the start of 2025 due to colder weather, falling U.S. stockpiles and additional sanctions on Russia's oil sector.

Oil ETFs gained about 4% last week. However, the outlook for 2025 does not appear too bullish.

Tensions in the Middle East escalated on Wednesday following an Iranian missile attack on Israel, sparking demand for safe-haven assets as investors grew anxious about the potential expansion of the conflict.

In the latest meeting, OPEC+ agreed to extend production cuts of 3.66 million barrels per day (bpd) until the end of 2025, along with prolonging cuts of 2.2 million bpd until September 2024.