Yesterday, the Department of Energy reported flat inventories of crude oil, along with a large drawdown in gasoline, which led to a solid jump in related exchange traded funds (ETFs).
The price of oil shot up to $106 with that news, reports Rob Wherry for Smart Money. Today, it’s close to $108 a barrel. Much of the concern is about Iraqi oil output, reports John Wilen for the Associated Press. A pipeline bombing cut oil exports from Basra, although officials are reporting news to the contrary. Exports have been cut to 1.2 million barrels a day, down from the normal 1.56 million per day.
The price of a gallon of gas, meanwhile, is up to a national average of $3.267, according to AAA.
The oil- and gas-related ETFs rose yesterday in trading, including:
- United States Oil (USO): up 4.1%; up 11.9% year-to-date
- Oil Services HOLDRs (OIH): up 3.1%; down 6.7% year-to-date
- United States Gasoline Fund (UGA): up 2.1%; up 1.1% since its Feb. 28 inception