Published on 23 Feb 2024 on Zacks via Yahoo Finance

MLP ETFs at a 52-Week High: Here's Why

Oil prices have been steady this year with the WTI crude ETF United States Oil ETF USO gaining 11.9%. The Middle East conflict, exacerbated by the Israel-Hamas war, has boosted oil prices due to disruptions in oil deliveries to Asia and Europe from the Red Sea fighting.

The Yemen-based, Iran-aligned Houthi group claimed responsibility for an attack on an oil tanker in the Red Sea, adding to the geopolitical crisis in the Middle East. However, the commodity’s run has been anything but smooth this year due to persistent concerns over a looming demand slowdown. Higher-for longer-U.S. interest rates and worsening economic conditions across the globe have resulted in demand destruction.

The International Energy Agency had last week warned of a demand slowdown in 2024, with the warning coming just as data showed the UK and Japan entering a recession. Oil prices saw gains for two consecutive weeks but remained within the 2024 trading range, with a strong dollar, bolstered by last week's high U.S. inflation figures, also affecting crude prices.