Crude Inventories Jump 3M Barrels, Defying Draw Expectations
USOI is trading near its 52-week low of $41.9 (5.5% above the low) on light trading volume (0.1× avg).
Summary
EIA data shows commercial crude inventories rose by 3M barrels for the week ended September 18, against a consensus draw of 0.7M barrels and a prior week draw of 0.6M. Gasoline stocks fell 1.7M barrels and distillates fell 0.4M, while the SPR dropped 0.4M to 284.6M. Despite the bearish crude build, futures are up 2.34% to $101.57, likely on geopolitical supply concerns. For USOI, an ETN tied to crude oil covered calls, the inventory surprise adds volatility but the price reaction is mixed. This follows a series of supply-side headlines, including Saudi production collapse and Iran's Strait of Hormuz offer, keeping crude above $100.
At the time of this announcement, USOI was trading at $44.19 on NASDAQ in the Energy & Transportation sector. The 52-week trading range was $41.90 to $61.30. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.