Crude Sees Strength on Weak Dollar, Light Trading (USO, OIL, XLE)
United States Oil (NYSE: USO) is trading solidly today as crude futures are still hovering at over two-year highs.
WTI crude February 11 contracts are trading at $91.39 per barrel, up 1.7% on the day. Prices haven't been in this arena since October 2008.
The Wall Street Journal notes that trading is close to the lowest level this year. Strength can also be coming in from a weaker U.S. dollar, and investors eschew the currency to take on a little more risk today.
Some are eying levels of $120 to $130 by the summer of 2011, based on stronger demand in China and other emerging markets.
Reuters notes that a technical support in oil will be seen around $89.
A close around current prices would mean crude ends 12% better on the year.
Oil is making a run to keep up with other commodities, such as wheat and cotton, which have also seen a strong run this year based in increased demand and inclement weather keeping supplies in check.
Other notable ETFs are: iPath S&P GSCI Crude Oil TR Index ETN (NYSE OIL) up 2.15%, Oil Services HOLDRs (NYSE: OIH) up 0.48%, and Energy Select Sector SPDR (NYSE: XLE) up 0.38% today.
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WTI crude February 11 contracts are trading at $91.39 per barrel, up 1.7% on the day. Prices haven't been in this arena since October 2008.
The Wall Street Journal notes that trading is close to the lowest level this year. Strength can also be coming in from a weaker U.S. dollar, and investors eschew the currency to take on a little more risk today.
Some are eying levels of $120 to $130 by the summer of 2011, based on stronger demand in China and other emerging markets.
Reuters notes that a technical support in oil will be seen around $89.
A close around current prices would mean crude ends 12% better on the year.
Oil is making a run to keep up with other commodities, such as wheat and cotton, which have also seen a strong run this year based in increased demand and inclement weather keeping supplies in check.
Other notable ETFs are: iPath S&P GSCI Crude Oil TR Index ETN (NYSE OIL) up 2.15%, Oil Services HOLDRs (NYSE: OIH) up 0.48%, and Energy Select Sector SPDR (NYSE: XLE) up 0.38% today.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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