Traders Find Plenty of Reasons to Buy Oil (USO) (UCO) (OIL)
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United States Oil ETF (NYSE: USO) added another 0.7 percent today. With Brent futures above $110, levels not seen since May, and WTI testing highs at $93, the bull rally in crude oil clearly remains intact.
Fundamentally, depending on which trader you ask, there are plenty of reasons to be long crude, with everything from weather to production seen as supportive for prices. The latest leg-up began last week following a surprise drawdown in inventories in the U.S. The move was also supported by recent developments in Europe, with many now cutting expectations for a catastrophic breakup of the EU, which some feared could collapse demand for the commodity.
In other developments, a disruption of flows caused by an explosion in Iraq gave bulls reason enough to send Brent above $110. In the U.S., a fire at a Chevron refinery in California could boost prices say analyst.
On the technical side, traders say a break of $93 per barrel for WTI will point to more upside.
United States Oil ETF (NYSE: USO) is higher by 5 percent in the past five trading sessions. iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is higher by a similar amount.
Fundamentally, depending on which trader you ask, there are plenty of reasons to be long crude, with everything from weather to production seen as supportive for prices. The latest leg-up began last week following a surprise drawdown in inventories in the U.S. The move was also supported by recent developments in Europe, with many now cutting expectations for a catastrophic breakup of the EU, which some feared could collapse demand for the commodity.
In other developments, a disruption of flows caused by an explosion in Iraq gave bulls reason enough to send Brent above $110. In the U.S., a fire at a Chevron refinery in California could boost prices say analyst.
On the technical side, traders say a break of $93 per barrel for WTI will point to more upside.
United States Oil ETF (NYSE: USO) is higher by 5 percent in the past five trading sessions. iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is higher by a similar amount.
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