Crude oil markets are experiencing heightened volatility as traders anticipate the outcome of the OPEC+ meeting scheduled for December 5, 2024. The market is reacting to geopolitical tensions, particularly threats from U.S. President-elect Donald Trump regarding potential military action in the Middle East if Israeli hostages are not released. This has added a layer of uncertainty, causing oil prices to fluctuate. Additionally, there is speculation that OPEC+ might delay its planned production increase, which could further impact supply dynamics. The U.S. has also intensified sanctions on Iran, targeting its oil sector, which could significantly reduce Iran's oil exports and tighten global supply.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) is up 0.4% in pre-market hours on Wednesday, December 4, reaching $17.77 as of 7:27 AM ET.