Crude oil prices have been on the rise, driven by several key factors influencing the market. On December 3, 2024, WTI crude oil futures surged over 2.5% to reach $70 per barrel. This increase is largely attributed to new U.S. sanctions on Iranian oil, which have tightened supply expectations. Additionally, OPEC+ is reportedly close to extending its production cuts for another three months, calming fears of a supply surge. The anticipation of this decision, set to be finalized later in the week, has bolstered market sentiment. Furthermore, geopolitical tensions, such as the fragile ceasefire between Israel and Lebanon, have added an extra layer of support to oil prices.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) fell to $17.66, down 4.80% as of 2:04 PM ET on December 3rd.