Two Ways: Crude Barrels Way to Nine Percent Gain
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Crude oil rose for a second consecutive day, jumping approximately 9% to close above $45 a barrel. Investors were surprised by a government report showing an unexpected drop in US crude inventories. The Energy Information Administration reported a decline of 700,000 barrels -- to 350.6 million barrels -- in the week ended February 27. According to the Wall Street Journal, analysts were expecting a draw of 600,000 barrels. Talk of more stimulus measures in China also helped boost sentiment.
Light sweet crude for April closed at $45.38 a barrel on the New York Mercantile Exchange -a gain of 9%.
For more context on the economy, see Professor Kevin Depew's Five Things: Fed Reports Housing "In the Doldrums."
From the Bull Pen: For those that don't like the Oil ETF (USO), consider Suncor Energy (SU). Keep and eye on short-term support near $20.50.
From the Bear Cave: Crude oil was due for a rebound, but bears can still consider Halliburton (HAL) on a rally back to $20 for an opportunity to reload on the downside.
Have a great night!
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