U.S. Oil Fund (USO) has broken above its 200-day simple moving average for the first time since the spring of 2012 as the oil ETF also clears a key resistance trend line.
USO was up nearly 2% on Thursday with crude futures rising above $95 a barrel in New York for the first time since September.
Oil prices jumped on supply concerns following an attack by militants on a natural-gas field in Algeria, MarketWatch reports.
“The nasty reawakening of geopolitical tensions always carries a premium for energy prices,” said Matthew Parry, senior oil-market analyst at the International Energy Agency, in the article.
Solid data on the U.S. economy was also supporting four-month highs in oil prices. Housing starts rose about 12% in December while jobless claims fell to the lowest level in five years.
“The economic numbers have been positive and the market is reacting,” said Bob Yawger at Mizuho Securities, in a Bloomberg report. “These figures give us reason to believe future oil demand will be stronger.”
The oil ETF is up about 9% the past month.
U.S. Oil Fund
oil-etf-uso
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
