Energy

Oil ETF's Hit As Crude Inventory Keep Rising (USO, OIH)

oil-well-image5The Department of Energy released its weekly oil inventory data and again we saw another build-up of black gold.  This increase has started to hit the United States Oil (USO) and the Oil Services HOLDRs (OIH) ETS’s on the news.  We also saw a build-up in all of the sub-sets measured as well.  What is interesting is that we are also starting to see a rise in refining capacity.

Crude oil inventories rose by 3.857 million barrels to 370.6 million barrels; and we were expecting a build of around 2 million barrels.  The gasoline inventories rose by 0.802 million barrels to 217.3 million barrels.  Distillates rose by 2.682 million barrels and now sits at a level of 142.31 million barrels.

As far as crude, this marks at least 6 consecutive weeks with a build and we were already at or close to record levels last week before this new addition.  The refineries in the U.S. ran at 83.4% capacity.

The United States Oil (USO) fell 1% on the headlines but has recovered off of lows to a slight negative on the day at $27.27; the Oil Services HOLDRs (OIH) is still up 1.7% at $89.00 today, but that briefly hit $90.00 before the news.

JON C. OGG

Is Your Money Earning the Best Possible Rate? (Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.