U.S. Oil Fund (NYSEArca: USO) has gained 22% from its 2012 low and continued to trade higher Wednesday as investors awaited the Federal Reserve statement.

Crude futures in New York rose above $98 a barrel after bottoming around $81 in June of last year.

Oil prices were rising after the Commerce Department on Wednesday said U.S. gross domestic product fell at a 0.1% annual rate in the fourth quarter. The report surprised economists who were expecting the U.S. economy to expand.

USO, the oil ETF, has been rallying on a weaker U.S. dollar with many investors positioning for more quantitative easing from the Fed.

“We would expect a status-quo announcement from the Fed with an acknowledgement that the outlook has improved slightly,” said Guy Wolf at commodities broker Marex Spectron Group Ltd., in a Bloomberg News report. “The U.S. economy is clearly strong, but the employment numbers are not so good that a Fed exit is imminent.”

The January nonfarm payrolls report will cross on Friday. Oil prices were trading at the highest level in over four months on Wednesday, according to Bloomberg.

U.S. Oil Fund

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