Crude Oil and the ETF United States Oil Trust jumped significantly after the Department of Energy release better-than-expected inventory data.
According to the EIA (Energy Information Administration) U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 4.9 million barrels from the previous week. At 327.5 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of year.
Expectation was for a drop in inventories of two million barrels. The USO jumped almost 3% after the inventory number was released. As the USO is slightly above its 20-day moving average, upside back to the 50-day moving average of 38.90 could be in the cards.
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