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Weekly Commodities ETF Report: Crude Surges Amid Geopolitical Tensions After Attacks on Saudi Oil Facilities; Gold Back Above $1500 On Uncertainty Over Future Rate Cuts

(MT Newswires) – Crude ended the week higher amid geopolitical tensions in the aftermath of last weekend’s attacks on two major oil facilities in Saudi Arabia. Saudi and US officials have alleged that the attack was perpetrated by Iran. On Wednesday, US President Donald Trump ordered increased sanctions against Iran rather than a military strike for its role in the Saudi attack, which had cut the country’s daily production output by 5.7 million barrels. There were expectations that the disruption would affect the global oil supply, but Saudi Arabia was able to restore its oil supply sooner than anticipated.  Saudi Energy Minister Prince Abdulaziz bin Salman was quoted by Reuters as saying that over half of the damaged production was restored in just two days after the attack. By Friday, the US had sanctioned the Iranian national bank, with US Treasury Secretary Steven Mnuchin saying the sanctions are “very big” and remove the last source of funding for Iran. Back home, the Energy Information Administration reported a 1.1 million-barrel rise in crude stocks. The street had been expecting a 2.25 million-barrel decrease, though the American Petroleum Institute reported a 600,000-barrel build after the close on Tuesday.  And the number of oil rigs operating in the US plunged by 14 to 719 during the week ended Sept. 20, the lowest level since May 2017, according to data compiled by energy services firm Baker Hughes. The combined oil and gas rig count in the US dropped by 18 to 868 as gas rigs fell by five to 148.

Light, sweet crude oil for October delivery rose 5.96% for the week, settling at $58.13 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 8.77% over the last five days and settled at $1.70 per gallon on Friday. Natural gas was down 3.13% for the week, ending Friday at $2.54 per 1 million British thermal unit.  

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) increased 0.88% this week, compared with an increase of 0.61% in the prior week.

Gold saw declines during the first half of the week following the US Federal Reserve’s expected interest rate cut, but worked back above the psychological price of $1,500, ending the Friday session at $1,506.20. For the week, the yellow metal rose 1.87%. The votes of the Federal Open Market Committee of the US central bank were not unanimous, leaving a cloud of uncertainty on the next easing of policies. The FOMC cut interest rates with a vote of 7-3, the second time the interest rates were trimmed in 2019. Following a divided vote among the members of the committee, concerns on the future of the easing on monetary policy were raised, also considering the strong state of the US’ labor market.

Meanwhile, copper was in negative territory, ending the week down 4.18% and closing Friday at a settlement price of $2.61. The World Bureau of Metal Statistics reported that the global consumption of the red metal fell to 13.29 million tonnes in the January – July period, down from 13.78 million tonnes in the same period last year. Demand from China –the largest consumer of the industrial metal — fell by t3.9% to 6.754 million tonnes. Demand from the European Union also declined by 6% to 1.885 million tonnes.

In agricultural commodities, wheat ended the week up 0.41%, closing the Friday session at a price of $4.84 per bushel. The boost in prices came amid concerns over crop harvests due to spring rains. The rains in the US have slowed down the wheat harvest for the spring season, and the resulting wet conditions have brought to light some possible quality issues for the crops. Among other grains, soybeans were down 1.78% for the week, and closed Friday at $8.83 per bushel; and corn for December delivery rose 0.47% in the week and settled at $3.71 per bushel in Friday’s session. Other commodities were mixed: coffee was around $0.98 per pound at Friday’s close, down 4.00% for the week; cocoa was up 6.41% for the week and closed Friday’s session at $2,473 per tonne, and sugar had a weekly increase of 1.17% and settled at a price of $0.12 per pound on Friday.

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These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

The SummerHaven Dynamic Commodity Index Total ReturnSM (SDCITR) is an index designed to reflect the performance of a portfolio of 14 commodity futures. The index is reformulated each month from 27 possible futures contracts. The 14 selected contracts are equally weighted and represent six sectors: Energy (WTI crude oil, Brent crude oil, natural gas, heating oil, gasoil, RBOB gasoline), Precious Metals (gold, silver, platinum), Industrial Metals (aluminum, copper, lead, nickel, tin, zinc), Grains (corn, soybeans, soybean meal, soybean oil, wheat), Livestock (live cattle, feeder cattle, lean hogs) and Softs (coffee, cocoa, cotton and sugar). One Cannot invest directly in an index.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at

We advise you to consider a fund’s objectives, strategies, risks, charges and expenses carefully before investing. The Prospectus contains this and other information. Download a copy of a fund’s Prospectus by clicking the following: SDCI. Please read any Prospectus carefully before investing

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USO002049 Ex. 11/30/2019