Crude oil prices have surged, driven by a combination of supply risks and increased winter demand, which has significantly impacted the ProShares UltraShort Bloomberg Crude Oil ETF (SCO). The rally in oil prices is primarily attributed to the breakout above the 200-day moving average, with traders targeting higher resistance levels. The market is also reacting to potential U.S. sanctions on Russia and Iran, which could disrupt global oil supplies. Additionally, harsh winter conditions in the U.S. and Europe have spurred demand for heating fuels, further lifting global oil consumption by 1.6 million barrels per day in the first quarter of 2025. This increased demand, coupled with tight inventories, has bolstered crude prices despite a stronger U.S. dollar.
The ProShares UltraShort Bloomberg Crude Oil ETF (SCO) fell to $15.20, down 7.03% as of 10:00 AM ET on January 10th.