WTI Higher as Inventory Drops (USO) (OIL) (UCO)

WTI futures are trading higher today. Brent futures are also trading higher. In the past 5 trading sessions, United States Oil ETF (NYSE: USO) is higher by nearly 8 percent. The move is being fueled by an anticipated that central back action will create a pickup in oil demand.

Today inventory data released by the EIA showed crude stockpiles fell by
3.7 million barrels last week. Yesterday API data showed stocks fell sharply by 5.4 million barrels, well above analyst expectations for a 300,000 barrel drawdown, so today’s EIA data wasn't a total surprise.

On Tuesday, the EIA raised its forecast for 2012 world oil demand growth by 90,000 bpd to 760,000 bpd. It raised its 2013 demand growth estimate by
140,000 bpd to 870,000 bpd

A fire at a Chevron Corp refinery in California and the potential for adverse weather in the Gulf is also supporting WTI and United States Oil ETF (NYSE: USO), while regional concerns in the middle east continue to support Brent.

iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is higher by 0.70 percent today.

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