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Oil Traders React as Romney says Supports Israel Strike on Iran (USO) (OIL) (UCO)

July 30, 2012 8:45 AM EDT Send to a Friend
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The United States Oil ETF (NYSE: USO) is indicated lower Monday morning, as crude oil futures dip following news over the weekend that Republican presidential hopeful Mitt Romney said he would give Israel unilateral support for a strike on Iranian nuclear facilities under his administration.

The US will support “any and all” measures to allay Iranian nuclear ambitions, the presidential candidate stated.

For now oil traders appear to be dismissing the statements as "nothing new," but the talk is limiting downside interest in the commodity.

Recent data points to a continued contraction in the economy in Spain. Slower growth in Europe is casting a pall on the global economy. This triggered a massive sell off in crude oil in the second quarter. Since then oil prices recovered, partially due to Iran saber rattling.

This week oil trader will be focused on central bank action and data out of OPEC. As always, oil traders will be reacting to headlines over Iran’s nuclear program, or the lack thereof.

United States Oil, ProShares Ultra DJ-UBS Crude Oil (NYSE: UCO), and the iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) are expected to open slightly lower as oil futures break below $90 per barrel.




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