Gasoline Drives Over Half of September's Inflation Jump as Energy Prices Surge
USOI is trading near its 52-week low of $41.9 (12% above the low).
Summary
September CPI data shows gasoline accounted for more than half of the monthly inflation rise, with prices up 9.1% month-over-month and 34% year-over-year. Diesel and other motor fuels surged 15.3% monthly and 74% annually. Unleaded gasoline has climbed 45% since late February when the Iran war began, and diesel is up 70%. Airfares rose 22% year-over-year, and electricity prices ticked up 0.2% monthly. Economists warn the Iran war is not a one-off price shock and higher inflation may persist unless the Fed raises rates more aggressively. Crude oil futures rose for a fifth straight session to $95.09/bbl, the highest since September 21, as strikes on shipping around the Strait of Hormuz and a Houthi attack on Saudi Aramco headquarters amplified supply risks. API data showed crude inventories plunged 11.1M barrels last week, the biggest drop since June 2025 if confirmed. The IEA warns diesel supply crunch will extend into 2027, with global observed inventories 509M barrels below pre-war levels. This directly impacts USOI, an ETN linked to crude oil covered calls, as sustained high energy prices and supply disruptions support elevated crude prices and volatility.
At the time of this announcement, USOI was trading at $46.88 on NASDAQ in the Energy & Transportation sector. The 52-week trading range was $41.90 to $61.30. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.