Crude Oil Rides on the Wings of Inventory Data (USO) (OIL)
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United States Oil ETF (NYSE: USO) moved higher early on Thursday as WTI futures test resistance just under $98 per barrel. EIA data this morning showed a drop in inventory to 7.43 million barrels vs. expectations of a decline of 4.95 million barrels. Data released by API yesterday showed crude inventory declined by 7.2 million barrels, so traders are not completely shocked by the large drop in inventory.
Crude oil is also getting a boost by comments by Mario Draghi, as he spoke in more detail about the EU's bond-buying plan. The plan is an effort by EU officials to stabilize conditions in Europe and end the sharp contraction in the economies there.
With a medium-term time horizon, oil prices are being underpinned by continued geopolitical concerns in the Middle East. As Western governments keep the sanctions-screws turned on Iran, officials in Tehran continue to mock the world with their ongoing efforts toward nuclear development, say some. On Wednesday, satellite images by the U.N. showed suspicion of clean-up activity at an Iranian military site it wants to inspect. Meanwhile, Israel keeps up strong anti-Iran rhetoric, stoking tensions.
WTI trades at $97 per barrel. Brent trades at $114.50. United States Oil ETF (NYSE: USO) is higher by 1.55 percent to 36.12.
iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is higher by a similar about.
Crude oil is also getting a boost by comments by Mario Draghi, as he spoke in more detail about the EU's bond-buying plan. The plan is an effort by EU officials to stabilize conditions in Europe and end the sharp contraction in the economies there.
With a medium-term time horizon, oil prices are being underpinned by continued geopolitical concerns in the Middle East. As Western governments keep the sanctions-screws turned on Iran, officials in Tehran continue to mock the world with their ongoing efforts toward nuclear development, say some. On Wednesday, satellite images by the U.N. showed suspicion of clean-up activity at an Iranian military site it wants to inspect. Meanwhile, Israel keeps up strong anti-Iran rhetoric, stoking tensions.
WTI trades at $97 per barrel. Brent trades at $114.50. United States Oil ETF (NYSE: USO) is higher by 1.55 percent to 36.12.
iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) is higher by a similar about.
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