Price Action in Crude Oil (USO) Steals the Show
Tweet Send to a Friend
Get Alerts USO Hot Sheet
Trade USO Now!
WTI futures and United States Oil Fund LP ETF (NYSE: USO) will once again be the focus of attention for investors as they take positions going into the weekend. Unlike the previous two weekends which had investors on pins and needles pending Greek elections on Sunday and a Spanish bailout the weekend before, this weekend is unlikely to have as much drama. Unless there is a surprise meltdown in Europe or a surprise central bank rate cut somewhere, crude oil is likely to continue acting as a barometer for economic strength, and traders will be following the action closely.
With the cat is out of the bag regarding the Fed's extension of operation twist, for the first time in along time energy traders can actually trade oil based on real supply and demand dynamics. In other words, oil is no longer trading on 'what ifs', it is trading the fundamentals and the reality of a drastically weakening global economy.
Yesterday, the Philly Fed report index showed a drop to minus 16.6 in June, the lowest reading since August. In the euro-region, a manufacturing index fell to 44.8, the weakest in three years. And, Chinese flash PMI was 48.1, signaling an eighth month of contraction. At the same time, crude oil inventories in the U.S. showed a surprise buildup last week.
United States Oil Fund LP ETF (NYSE: USO) is down 14.56 percent in the past month to 29.45. WTI futures recovered slightly overnight, but are still trading near fresh lows at $78.50. Brent trades at $90 in early trading on Friday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
With the cat is out of the bag regarding the Fed's extension of operation twist, for the first time in along time energy traders can actually trade oil based on real supply and demand dynamics. In other words, oil is no longer trading on 'what ifs', it is trading the fundamentals and the reality of a drastically weakening global economy.
Yesterday, the Philly Fed report index showed a drop to minus 16.6 in June, the lowest reading since August. In the euro-region, a manufacturing index fell to 44.8, the weakest in three years. And, Chinese flash PMI was 48.1, signaling an eighth month of contraction. At the same time, crude oil inventories in the U.S. showed a surprise buildup last week.
United States Oil Fund LP ETF (NYSE: USO) is down 14.56 percent in the past month to 29.45. WTI futures recovered slightly overnight, but are still trading near fresh lows at $78.50. Brent trades at $90 in early trading on Friday.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Markets Fluctuate on Chatter of Early QE Exit by Fed
- Soros, Others Dump Gold as Metal No Longer 'Safe Haven'
- Gold Sinks Below $1400/oz (GLD) (IAU) (SLV)
Create E-mail Alert Related Categories
Commodities, ETFsRelated Entities
Oil Inventories, Crude Oil
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
