The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is experiencing notable price movement due to a confluence of factors impacting the crude oil market. A significant trading frenzy in the North Sea crude market has added uncertainty to oil prices, with eight cargoes, equivalent to about 5.6 million barrels, changing hands in a single day. This unusual activity, especially in December when trading typically slows, has raised questions about future price directions. The North Sea market's influence on the Dated Brent benchmark, a critical pricing reference for global oil, underscores the potential for volatility in oil prices.
Additionally, Russia's crude oil shipments have surged by 570,000 barrels per day, reaching 3.36 million bpd, just ahead of an OPEC+ meeting. This increase in supply, coupled with strengthening winter demand from China, has pushed spot premiums of Russia's ESPO blend to its highest level against ICE. Meanwhile, OPEC+ is reportedly discussing an extension of its production cuts until the end of the first quarter of 2025, which could further influence market dynamics. These developments contribute to a complex landscape for crude oil, affecting the ETF's performance.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is currently priced at $17.95, reflecting a 3.23% decrease from the previous close.