Oil Ends Higher For Third Day, Uncertainty Over BP Persists

Crude oil July contracts settled up for a third day in a row today, ending at $74.38 per barrel, up from lows of $68.75 seen on May 25th. Major to the gain was the decrease in inventories reported today by the EIA, which showed a decline of 1.83 million barrels, versus the consensus of about a 400,000 barrel decline. The drop makes a "streak" for inventories to drop; a decline of 1.9 million barrels was reported last week.

Price were initially coaxed by news out of China export anticipation and gains in equities early on. China is expected to release official export numbers tomorrow, though sources say that numbers might come in 50% better than last year, according to Reuters.

Many in the sector ended down, today, on fears over BP Plc (NYSE: BP) cutting its dividend, or worse. Some even think that the company might go bankrupt by the end of the summer.

ETFs to keep an eye on:

• United States Oil (NYSE: USO);
  
  
• Oil Services HOLDRs (NYSE: OIH);
  
  
• iPath S&P GSCI Crude Oil Ttl Ret Idx ETN (NYSE: OIL); and
  
  
• Energy Select Sector SPDR (NYSE: XLE).

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