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The Zacks Analyst Blog Highlights USO, BNO, DBO and USL
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For Immediate Release
Chicago, IL – October 24, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: United States Oil Fund LP (USO - Free Report) , United States Brent Oil Fund LP (BNO - Free Report) , Invesco DB Oil Fund (DBO - Free Report) and United States 12 Month Oil Fund LP (USL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Oil ETFs Gain on Russian Sanctions: Can the Rally Last?
Oil prices have gained on Oct. 22, 2025. The WTI crude oil ETF United States Oil Fund LP jumped 3.5% on the day, while the fund advanced 1.8% after hours. Meanwhile, brent crude ETF United States Brent Oil Fund LP added 3.1% on Oct. 22, 2025 and lost 0.3% after hours.
The Trump administration imposed further sanctions on Russia's two largest crude companies, due to Moscow's "lack of serious commitment to a peace process to end the war in Ukraine."The latest action targets Russia's two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil).
"Treasury is prepared to take further action if necessary to support President Trump's effort to end yet another war," said Treasury Secretary Scott Bessent, as quoted on CNBC. Meanwhile, Trump has also been trying to pressure India to stop purchasing Russian oil. India and China are among the biggest buyers of Russian crude exports (read: The Geopolitical Windfall for Indian ETFs as Trump Hints at Tariff Cut).
Can the Rally Last?
Although oil prices rose on Oct. 22, 2025, the performances of oil ETFs have been subdued this year. The USO ETF has fallen 8.2% this year and the BNO ETF has lost about 6% in the year-to-date frame. OPEC+, led by Saudi Arabia and Russia, has been raising output lately, which has led to the decline in oil prices. Meanwhile, Trump tariff tensions have dampened the global growth outlook and hurt crude demand.
Despite the current tightness in the oil market, Goldman Sachs maintained a conservative forecast for oil prices. The bank expects Brent crude to decline next year, reaching $52 per barrel by Q4 of 2026 (as quoted on exchangerates.org.uk).
However, the bank noted that the next price decline may take time as strong diesel margins and seasonal stock builds should facilitate the near-term demand.Overall, signs of continued global oil surplus will likely keep the oil market outlook bleak, per the above-mentioned source.
Is There Any Tailwind?
In early June 2025, Goldman Sachs pointed to several factors supporting the oil's outlook (as quoted on Reuters). These factors included the likes of stronger-than-anticipated consumption trends in Europe, and a less aggressive adoption of electric vehicles in Western markets.
Bottom Line
The likelihood of oversupply concerns may dull any positive price impact originating from the geopolitical risks. As a result, the outlook surrounding the oil market is moderately bearish. Investors should keep a close watch on oil ETFs like USO, BNO, Invesco DB Oil Fund and United States 12 Month Oil Fund LP.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights USO, BNO, DBO and USL
For Immediate Release
Chicago, IL – October 24, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: United States Oil Fund LP (USO - Free Report) , United States Brent Oil Fund LP (BNO - Free Report) , Invesco DB Oil Fund (DBO - Free Report) and United States 12 Month Oil Fund LP (USL - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Oil ETFs Gain on Russian Sanctions: Can the Rally Last?
Oil prices have gained on Oct. 22, 2025. The WTI crude oil ETF United States Oil Fund LP jumped 3.5% on the day, while the fund advanced 1.8% after hours. Meanwhile, brent crude ETF United States Brent Oil Fund LP added 3.1% on Oct. 22, 2025 and lost 0.3% after hours.
The Trump administration imposed further sanctions on Russia's two largest crude companies, due to Moscow's "lack of serious commitment to a peace process to end the war in Ukraine."The latest action targets Russia's two largest oil companies, Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil).
"Treasury is prepared to take further action if necessary to support President Trump's effort to end yet another war," said Treasury Secretary Scott Bessent, as quoted on CNBC. Meanwhile, Trump has also been trying to pressure India to stop purchasing Russian oil. India and China are among the biggest buyers of Russian crude exports (read: The Geopolitical Windfall for Indian ETFs as Trump Hints at Tariff Cut).
Can the Rally Last?
Although oil prices rose on Oct. 22, 2025, the performances of oil ETFs have been subdued this year. The USO ETF has fallen 8.2% this year and the BNO ETF has lost about 6% in the year-to-date frame. OPEC+, led by Saudi Arabia and Russia, has been raising output lately, which has led to the decline in oil prices. Meanwhile, Trump tariff tensions have dampened the global growth outlook and hurt crude demand.
China's Economic Headwinds Hurt Oil Demand
Globally, China is the second-largest oil consumer after the United States. China's ongoing economic woes, including a real estate crisis and an inclination for greener energy consumption are likely to hurt the oil demand (read: ETFs in Focus as China's Economic Growth Slows in Q3).
Cautious Long-Term Price Outlook
Despite the current tightness in the oil market, Goldman Sachs maintained a conservative forecast for oil prices. The bank expects Brent crude to decline next year, reaching $52 per barrel by Q4 of 2026 (as quoted on exchangerates.org.uk).
However, the bank noted that the next price decline may take time as strong diesel margins and seasonal stock builds should facilitate the near-term demand.Overall, signs of continued global oil surplus will likely keep the oil market outlook bleak, per the above-mentioned source.
Is There Any Tailwind?
In early June 2025, Goldman Sachs pointed to several factors supporting the oil's outlook (as quoted on Reuters). These factors included the likes of stronger-than-anticipated consumption trends in Europe, and a less aggressive adoption of electric vehicles in Western markets.
Bottom Line
The likelihood of oversupply concerns may dull any positive price impact originating from the geopolitical risks. As a result, the outlook surrounding the oil market is moderately bearish. Investors should keep a close watch on oil ETFs like USO, BNO, Invesco DB Oil Fund and United States 12 Month Oil Fund LP.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Get it now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.