U.S. Oil Produces Pick Up Where OPEC Left Off With Massive Exports
Looking at the U.S. energy sector, crude exports have never been stronger. After Congress lifted the U.S. oil export ban in December 2015, exporters didn’t hesitate to turn on the spigots.
Now, for the second week as of February 17, the U.S. sent more than 1 million barrels of crude onto world markets, filling the gap created by the Organization of Petroleum Exporting Countries (OPEC) in December when it agreed to trim production.
Producers are also ramping up activity. In the week ended February 17, companies pumped more than 9 million barrels a day for the first time since April 2016. The recent weekly record of 9.6 million barrels a day, set in July 2015, could be tested if producers continue their upward trend.
Even with increased output, prices continue to creep up. From its low of just over $30 a barrel last February, Brent crude has climbed 88 percent.
The United States Oil Fund LP ETF (NYSE:USO) was trading at $11.47 per share on Monday afternoon, up $0.01 (+0.09%). Year-to-date, USO has declined -2.13%, versus a 6.16% rise in the benchmark S&P 500 index during the same period.
USO currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #43 of 121 ETFs in the Commodity ETFs category.
The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.
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About the Author: Frank Holmes
Frank Holmes is the CEO and chief investment officer of U.S. Global Investors. Mr. Holmes purchased a controlling interest in U.S. Global Investors in 1989 and became the firm’s chief investment officer in 1999. In 2006, Mr. Holmes was selected mining fund manager of the year by the Mining Journal, and in 2011 he was named a U.S. Metals and Mining “TopGun” by Brendan Wood International. He is also the co-author of The Goldwatcher: Demystifying Gold Investing. More than 30,000 subscribers follow his weekly commentary in the award-winning Investor Alert newsletter which is read in over 180 countries.
Under his guidance, the company’s mutual funds have received recognition from Lipper and Morningstar, two trusted independent financial authorities. In 2015, Mr. Holmes led the company into the exchange traded fund (ETF) business with the launch of the U.S. Global Jets ETF, which invests in the global airline sector.
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