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Crude Oil Prices Rise on Fed Reserve, Crude Reserve Announcements

By  +Follow September 18, 2013 9:10AM
Tickers Mentioned:

Oil ETFs were on the rise today as the price of crude oil jumped. October contracts for West Texas Intermediate (WTI) crude were up over 2 percent to more than $107 a barrel and November contracts on Brent crude were up over 1.5 percent to almost $110 a barrel. The result in the ETF market was as one expected, with major crude oil ETFs climbing. The United States Oil Fund LP ($USO), which tracks WTI prices, climbed almost 2.5 percent by mid afternoon, and the ProShares Ultra DJ-UBS Crude Oil ($UCO), which is leveraged 200 percent, showed gains of almost 5 percent. Crude bears, meanwhile, took a hit as ProShares UltraShort DJ-UBS Crude Oil ($SCO), which is also leveraged 200 percent, dropped over 5 percent.

Demand for oil remains high, and looks to stay that way

Prices for crude oil jumped today on two news items. News that the Federal Reserve would not be “tapering” its bond-buying program rippled across the economy, and likely supported expectations for continued high demand in the United States. And the news from earlier in the day confirmed that demand has been much higher than expected.

The Energy Information Administration (EIA) reported that American oil stockpiles fell by some 4.4 million barrels to 355.6 million barrels last week. This significantly outpaced the average estimate of 1.2 million barrels that analysts polled by the Wall Street Journal came up with, and it was much higher than the 252,000 barrel decline that the American Petroleum Institute (API) claimed its data showed yesterday. EIA data also revealed that refiners were working at 92.5 percent of their capacity for the second straight week, representing 16.4 million barrels of crude processed.

"The refiners were running like crazy at a time [their capacity utilization] is usually down," said Kyle Cooper, director of research at Houston energy consultancy IAF Advisors. Demand usually peaks during summer months and declines during the fall. The price jump comes after oil dropped last week when it appeared as though a U.S. military strike in Syria was less likely.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for uso
Ballou Plum Wealth
2 Sep 14 16:12:46
RT @philstockworld: We flipped bullish on Oil at $97.50, here's why: $CL_F, $SCO $USO #futurestrading Also, our updated bounce levels -- h…
Top ETF Funds
2 Sep 14 15:59:44
Today's Thorns, Roses and All Time Highs in the Markets..... http://t.co/o4LiOhzShx $USO #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 15:59:28
Here Are The Most Important Energy Charts To Watch After Today's Plunge.. http://t.co/zHJMNWZE4E $USO #ETF #ETFs #Stocks
Pulsar Investments
2 Sep 14 15:57:56
A late comeback from the long weekend... Stocks are in normal sideways but treasuries $TLT, gold $GLD $GDX and oil $USO all break down!
2 Sep 14 15:32:02
What is the $USO going to do next? Get real time alerts and analysis at http://t.co/hWteaMXH1T
2 Sep 14 15:07:51
$USO - heading lower http://t.co/zJRx14Zuin
Stock News Updates
2 Sep 14 14:52:50
$USO: Here Are The Most Important Energy Charts To Watch After Today's Plunge http://t.co/n6LPdgxtk2 http://t.co/xrM55HhEZg
2 Sep 14 14:52:37
$USO - BTO 4 Oct 34 calls at market - for Wednesday open. Current price .49 x .53
Market Newswire
2 Sep 14 14:46:08
Stock Market Today: Stocks End Mixed Despite Gains in Manufacturing, Construction - http://t.co/l8PufGhOyx $USO #stocks #investing #stock
Brian Clark
2 Sep 14 14:43:33
RT @geckler: Trade aside people are not proud enough of those #EIA #s out today highest export # since Eisenhower lowest import # since Rea…
2 Sep 14 14:22:01
$CL_F a short "IF" 92.68 is broken; targets 91.24 & 86.38. Bulls must retake 96 first. $USO http://t.co/43s54gKcz9
361 Capital
2 Sep 14 14:21:08
Thorns in the Market Today: $TLT $GLD $USO $OIH $XLE $XLU $WYNN $MPEL $HD $CONN http://t.co/m91KvMPbUW
Jeff Quiggle
2 Sep 14 13:57:35
Stock Market News
2 Sep 14 13:52:50
$USO: Stock Market Today: S&P Closes Above 2000 for Second Day http://t.co/95YbUaZWWP http://t.co/4J4OWWVSbx
Greg Harmon, CMT
2 Sep 14 13:34:23
$CL_F $USO Ugly day, 92/88 support, resistance 96/99 http://t.co/edbnQaExL4
Top ETF Funds
2 Sep 14 13:28:03
Poor Fundamentals Sap Energy From Oil ETFs.. http://t.co/cvegSglP5u $USO #ETF #ETFs #Stocks
Top ETF Funds
2 Sep 14 13:27:46
Hope it was a great Summer — sunburns and all….. http://t.co/YFye52Rwns $USO #ETF #ETFs #Stocks
Gordon Eckler
2 Sep 14 13:13:28
Picked up 1/4 long CLV4 deltas in Globex around 9318 spot for overnight position in case I was shaken out earlier $USO
2 Sep 14 13:08:30
#Crude oil price distortion directly correlated with start of #ISIS attacks $CL_F $USO
2 Sep 14 13:07:36
#ISIS probably offloading tons of crude onto market $CL_F $USO
Market Updates
2 Sep 14 12:52:39
$USO: Stock Market Today: S&P Closes Above 2000 for Second Day http://t.co/zP5D5bL1vf http://t.co/tiijRGtsgg
Stock Rocket
2 Sep 14 12:43:57
$DGLY is up 940.2% in 3 weeks! Our new penny stock alerts are coming soon: http://t.co/G4xan5kQD5 $USO $EWP $CORN
2 Sep 14 12:33:09
$USO taking a beating let's see if 34.5 holds
Aspen Trading Group
2 Sep 14 12:32:28
$USO looking weak & set to take out recent lows - sending prices towards http://t.co/69F3cZbqAq http://t.co/G5vKmMhM8v
2 Sep 14 12:25:51
this is why fossil will continue to go down, green going cheap $USO $TAN $NG_F http://t.co/AqrQJp0Gn0
2 Sep 14 12:25:12
Energy names lead Dow lower as oil tumbles http://t.co/Tx1yfINRpp $XLE $USO $UNG $DIA
Ricardo Espinosa
2 Sep 14 12:17:57
Got $AXP, $COH long call spreads and shorted $USO and $XOM call spreads. Got some $SPY weekly short puts. Very bullish equities with $JNK up
Seeking Alpha
2 Sep 14 12:15:34
Growing Potential For Kurdish Crude Exports http://t.co/o6T3ZxyFMG $USO $OIL $UCO $SCO $BNO $DTO $DBO $CRUD $USL $UWTI $DWTI $DNO $SZO
SI Fractalerts
2 Sep 14 12:04:25
Confidently trade $USO Crude http://t.co/4xdmwh5gCc
Antonino S. Vitale
2 Sep 14 11:54:15
RT @msttrader: Looks like 5th wave down in progress on crude oil. $CL $USO.Target 90-91. 32.50.
Alan Farley
2 Sep 14 11:53:43
Looks like 5th wave down in progress on crude oil. $CL $USO.Target 90-91. 32.50.
Stock News Headlines
2 Sep 14 11:52:42
$USO: Global Energy Stocks, ETFs Remain Good Bargains http://t.co/FF1cgcVOdU http://t.co/0UJ1Xp5Q1i
Sean Dalton
2 Sep 14 11:36:44
RT @SeekingAlpha: Oil Price Bounces Back - Will The Rally Continue? http://t.co/4e1cSulOd7 $USO $OIL $CRUD $BARL
Seaside Trader
2 Sep 14 11:33:22
$CL_F Daily - Slammed on high volume. 91 H&S target in play - http://t.co/3y4uNtz5D1 #oil $USO @CMEGroup http://t.co/7UPa3eaGzz
Gordon Eckler
2 Sep 14 11:26:38
Remarkable Nymex session - I'll remember the precision of last week's trade for a long time. I want that presence of mind in all trades $USO
STRAT Trading
2 Sep 14 11:21:01
Will be looking long $USO in the AM after some flush follow through
2 Sep 14 11:13:00
"@DrKris: Slip-sliding away: Oil etns $OIL $DBO $USO all breaking major support levels."
2 Sep 14 11:12:14
$OIL $DBO $USO $CL_F Crude keeps falling...
David Blair
2 Sep 14 11:10:20
$USO attempting to break the box bottom along its down trend. http://t.co/sWvbutoQpi
Interactive Brokers
2 Sep 14 11:05:05
#IBTI Technical Analysis - Waverly Advisors Summary Stats http://t.co/vw14qSQjL9 $SPY $IWM $QQQ $FXE $USO $GLD $TLT $FXY
Stock Updates
2 Sep 14 10:52:46
$USO: Updates & Accountability Check http://t.co/dXIkcziiZJ http://t.co/wbktOUBBNv
Gordon Eckler
2 Sep 14 10:42:43
Trade aside people are not proud enough of those #EIA #s out today highest export # since Eisenhower lowest import # since Reagan $USO #USA
Gordon Eckler
2 Sep 14 10:39:04
Bailed on the CLV4 long deltas at $93 for small loss $USO
Green to Gold Group
2 Sep 14 10:33:08
ALERT $CL_F Oil Futures went down hard as expecting.. SHORTED $USO @ $95 with option spreads. LONG $DX_F $UUP http://t.co/sao1vWrXiJ
Investors Hangout
2 Sep 14 10:25:17
clayton: $USO 35.76 http://t.co/Msg0lmaegh
Investors Hangout
2 Sep 14 10:25:16
clayton: $USO 35.76 http://t.co/Riu3CJwLbq
Stevie B
2 Sep 14 10:19:17
EU proposes tough new sanctions on Russia http://t.co/QYBEFyF0kH $USO #OIL $SPY $QQQ $XLE $OIH #STOCKS
2 Sep 14 10:17:02
$USO 35.76 http://t.co/shgMfMx1Bw
Sarcasm Bot
2 Sep 14 10:06:42
$USO Looks like it is going to break UP.
Large Void Bot
2 Sep 14 10:00:34
Popular: $MCD, $FB, $ACAD, $USO, $FEYE, $MU, $MGM, $GWPH, $DIA, $SCO, $UAL, $TOL, $DUG
By  +Follow September 18, 2013 9:10AM



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