Crude Oil Goes Ballistic (USO)
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After posting the largest gain in 3 years, crude oil settled 9.4 percent higher on Friday. The ballistic move in oil came after investors received surprisingly good news from an EU summit that began on Thursday.
"Basically it boils down to demand," commented on oil trader. "If the Europeans can get their house in order -- and up until now they haven't -- but if they can markets see that as potentially helping create demand for oil, or at least it could halt the contraction."
After breaking through key resistance at $81 per barrel, the price of WTI went on a non-stop tear of $4 to $85.
"It was relentless," said the trader. "It has been a while since we saw a move like this."
With bears licking their wounds today, oil sets itself up to take out resistance at $85 early next week. With Europe falling inline, investors will be keying off of data out of China and Japan over the weekend, and U.S. manufacturing data on Monday could also move markets. Next Friday’s job’s data will also help decide oil’s fate.
United States Oil (NYSE: USO) closed higher today but is still negative on a monthly chart.
"Basically it boils down to demand," commented on oil trader. "If the Europeans can get their house in order -- and up until now they haven't -- but if they can markets see that as potentially helping create demand for oil, or at least it could halt the contraction."
After breaking through key resistance at $81 per barrel, the price of WTI went on a non-stop tear of $4 to $85.
"It was relentless," said the trader. "It has been a while since we saw a move like this."
With bears licking their wounds today, oil sets itself up to take out resistance at $85 early next week. With Europe falling inline, investors will be keying off of data out of China and Japan over the weekend, and U.S. manufacturing data on Monday could also move markets. Next Friday’s job’s data will also help decide oil’s fate.
United States Oil (NYSE: USO) closed higher today but is still negative on a monthly chart.
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