The United States Oil Fund LP (USO) is experiencing a significant surge, soaring 5.01% in intraday trading on Wednesday. This sharp increase is primarily driven by a notable rally in crude oil prices, with West Texas Intermediate (WTI) crude oil up 2.2% to $66.43 per barrel.
The rise in oil prices is reflected across the energy sector, with the Energy Select Sector SPDR Fund (XLE) also gaining 0.9% in pre-market trading. Global benchmark Brent crude oil has similarly increased, rising 1.5% to $67.85 per barrel. This broad-based rally in the energy market is likely fueling investor interest in oil-related ETFs like USO.
While specific catalysts for the oil price surge were not detailed in the available news, the movement suggests potential supply constraints or increased demand expectations. Investors should note that USO's performance typically correlates closely with short-term movements in WTI crude oil prices, making it a popular instrument for those seeking exposure to oil market fluctuations.
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