US Oil ETF Reaches Highest Level Since 2015 Amid Rising Shipping Costs
US oil ETF hits highest since 2015 as shipping costs surge and energy market shifts beyond oil prices
The Economic Times
Image: The Economic Times
The United States Oil Fund (USO) has surged to its highest level since July 2015, driven by increasing oil prices and shipping costs. The Breakwave Tanker Shipping ETF (BWET) has skyrocketed over 600% this year, reflecting a shift in investor focus from oil prices to transportation costs due to global tensions and supply disruptions.
- 01The USO has risen nearly 90% this year, reaching its highest level since 2015.
- 02Shipping costs are now a key focus for investors, with BWET increasing over 600%.
- 03Tensions in the Strait of Hormuz are contributing to rising shipping costs.
- 04The Energy Select Sector SPDR Fund (XLE) has only gained over 23% this year.
- 05Investors are now prioritizing infrastructure and shipping over traditional oil prices.
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The United States Oil Fund (USO) has reached its highest level since July 2015, driven by rising oil prices and increased shipping costs. As of now, US gas prices are also at their highest since 2022, largely due to global tensions and ongoing issues in the US-Iran conflict. Investors are shifting their focus from oil prices alone to the costs associated with transporting oil. The Breakwave Tanker Shipping ETF (BWET), which tracks oil shipping costs, has surged over 600% this year, highlighting this trend. Experts note that disruptions in shipping routes, particularly in the Strait of Hormuz, are significantly impacting costs. While the Energy Select Sector SPDR Fund (XLE) has gained over 23%, BWET's growth indicates a changing landscape in energy investing, where infrastructure and shipping are becoming increasingly important.
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Rising shipping costs could lead to higher consumer prices for oil and gas, affecting household budgets and transportation costs.
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