Oil exchange traded funds rallied Thursday as crude futures spiked nearly 3% to within range of $100 a barrel.
Oil prices jumped after an ADP report estimated private payrolls rose much more than expected in June.
U.S. Oil Fund (NYSEArca: USO) was up 2.5% in recent trading.
The ADP report raised hopes for Friday’s data on nonfarm payrolls, although some analysts warn about using the ADP report as a leading indicator.
“The economic data is better than expected,” Bill O’Grady, chief market strategist at Confluence Investment Management, told Bloomberg. “It appears that economists were too negative about the prospects for growth.”
The oil ETF was down about 3% year to date as of Wednesday’s close.
U.S. Oil Fund