Crude oil markets are currently experiencing a complex interplay of geopolitical tensions and supply dynamics, which are influencing the underlying assets tracked by the ProShares UltraShort Bloomberg Crude Oil ETF (SCO). Recent developments suggest that OPEC+ may delay its planned production increase by three months, a move that has contributed to a stabilization of crude oil prices. This potential delay, coupled with U.S. sanctions on Iranian oil, has led to a rally in oil prices, with U.S. crude climbing over 2.5% to surpass $70 per barrel. The geopolitical landscape, particularly the sanctions on Iran, is adding upward pressure on oil prices, as market participants weigh the implications of reduced Iranian exports.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) closed at $18.23, marking a 2.99% increase for the day, with a further 0.38% rise after market hours as of 4:40 PM on Wednesday, December 4th.