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Weekly Commodities ETF Report: Crude Closes Lower on Supply Issues, Lingering Slowdown in Demand; Gold Slips Despite Stocks’ Weakness Due to Impeachment, US-China Trade Worries

(MT Newswires) – Crude ended both Friday’s session and the week lower, as Saudi Arabia’s crude production recovered faster than expected after the drone attacks last week. Traders are also keeping a close eye on Iran and the US sanctions imposed on the Middle Eastern country after the US and Saudi Arabia tagged it as the one responsible for the attacks. On Friday, Iranian President Hassan Rouhani claimed that the US offered to lift the sanctions if the two countries engaged in talks, but this was denied by US special representative for Iran Brian Hook. Concerns over lower global crude demand due to a slowdown in China’s economic growth also continue to linger. China is the biggest importer of crude oil. Along the same lines, the International Energy Agency (IEA) raised the possibility of lowering its estimates for global oil demand for 2019 and 2020 if there is a worsening in the global economy. Back home, the Energy Information Administration said US crude inventories rose by 2.4 million barrels to reach 419.5 million barrels in the week through Sept. 20, matching the five-year average for this time of year. A week earlier the stockpiles rose 1.1 million barrels. The American Petroleum Institute on Tuesday reported a build of 1.4 million barrels for the week ending Sept. 20. Meanwhile, the number of oil rigs operating in the US fell by six to 713 during the week ended Sept. 27, the lowest level since May 2017, according to data compiled by energy services firm Baker Hughes (BHGE). The combined oil and gas rig count in the US dropped by eight to 860 as gas rigs fell by two to 146.

Light, sweet crude oil for November delivery fell 3.84% for the week, settling at $56.41 per barrel at the end of Friday’s session. In other energy futures, gasoline was down 4.68% over the five-day period and settled at $1.62 per gallon on Friday. Natural gas was down 5.33% for the week, ending Friday at $2.44 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.46% on the week, compared with a decline of 0.97% the prior week.

Gold rose earlier in the week, initially benefitting from weakness in US equities, which were weighed by political drama as an impeachment inquiry was launched against President Donald Trump, on the basis

of a whistleblower report released Thursday. The report surrounded Trump’s solicitation of Ukraine’s interference for his personal political benefit in the 2020 US election. Additionally, the White House is accused of trying to cover evidence about the conduct. Also casting a shadow on market sentiment was news that Washington is looking into limiting the portfolio flows of US investors into China, which could possibly derail the scheduled trade talks between the world’s two largest economies. However, the yellow metal ultimately declined for the week, down 1.34%, as the US dollar strengthened, although gold remained above the key $1,500 level, closing Friday’s session at $1,515.20. Meanwhile, copper managed to eke out modest gains, ending the week up 0.23% and closed Friday at a settlement price of

$2.58 despite downbeat industrial economic data from China. Industrial profits in mainland China fell 2% in August year-over-year, according to the National Bureau of Statistics, from an increase of 2.6% in the prior-year period.

In agricultural commodities, China is expected to boost its purchases of soybeans from the US in step with the high-level trade negotiations between the US and China in early October, according to a report on Bloomberg. Citing Chinese agricultural consultant and Chairman of Shanghai JC Intelligence Co., Li Qiang, the report said China could buy another 1 million to 2 million tons of soybeans. Earlier in the week, the customs commission in China said it will continue exempting certain US agricultural products, including soybeans and pork, from additional duties in support of Chinese companies importing those products and as a response to the US’ tariff exemptions on more than 400 types of Chinese exports.

Soybeans were up 0.09% for the week and closed Friday at $8.83 per bushel. Among other grains, wheat ended the week up 0.46%, closing the Friday session at a price of $4.87 per bushel; and corn for December delivery rose 0.27% in the week and settled at $3.72 per bushel in Friday’s session. Other commodities were higher: coffee was around $1.00 per pound at Friday’s close, up 2.24% for the week; cocoa was up 0.61% for the week and closed Friday’s session at $2,490 per tonne; and sugar had a weekly increase of 4.39% and settled at a price of $0.13 per pound on Friday.

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Please read any Prospectus carefully before investing.

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

Past performance does not guarantee future results. This information is intended for U.S. residents.

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USO002052 Ex. 11/30/2019