Citi VelocityShares 3x Long Crude Oil S&P ETN (UWT)

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Oil settles higher after surprise drop in U.S. crude stockpiles

U.S. crude oil bounced off one-month lows to finish higher after the government reported domestic inventories fell by 4M barrels, compared with an expected 1.2M-barrel increase; WTI settled +1.2% to $62.12/bbl, Brent +0.7% to $70.37/bbl.

Combined with growing tensions between the U.S. and Iran, the news outweighed concerns that a protracted U.S.-China trade conflict would hurt energy demand.

"Crude prices are stabilizing after making a five-week low and could see further upside if trade talks do not completely fall apart this week," says Oanda market analyst Edward Moya.

Also, Saudi Arabia reportedly is expected to keep its crude exports below 7M bbl/day in June, staying under its production quota in OPEC's current global supply deal, despite pressure from Pres. Trump to reduce oil prices.

https://seekingalpha.com/news/3461030-oil-settles-higher-surprise-drop-u-s-crude-stockpiles