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Oil On Four Day Win-Streak

August 27, 2010 2:19 PM EDT
Oil is continuing its four-day winning streak as investors see the commodity as oversold.

Crude October contracts are currently $1.62 higher to $74.96 per barrel. The trend is continuing after contracts settled at $71.63 on August 24, 2010. iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is up 1.98% today and United States Oil (NYSE: USO) is 1.99% higer as well today.

Economic data today showed that GDP grew by 1.6%, revised down from 2.4% initially, and topping out above the consensus of 1.4% that analysts were expecting. Additionally, Fed Chief Ben Bernanke said that he would do whatever it takes to get the U.S. economy chugging along again, or in his words, “the Federal Reserve remains committed to playing its part to help the U.S. economy return to sustained, noninflationary growth.”

The energy sector is seeing some upside as well today, with the Energy Select Sector SPDR (NYSE: XLE) gaining 2.13% on the session.


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