The From OilPrice.com:
The Energy Information Administration reported a draw of 600,000 barrels in U.S. crude oil inventories for the week ending October 21, bringing a shred of calm to the market worries sparked by the American Petroleum Institute’s estimate of a 4.8-million-barrel inventory increase reported yesterday.
Total crude inventories, according to EIA, stood at 468.2 million barrels, below the maximum for this time of year, but near the upper limit.
Gasoline inventories also saw a big draw, falling by 2 million barrels last week. Traders like to focus on gas in addition to oil, since it can be a leading indicator of more gains to come for crude prices.
Looking at the leveraged crude ETF space, the ProShares Ultra DJ-UBS Crude Oil ETF (NYSE:UCO), which provides double leveraged bullish exposure to crude oil prices, surged nearly 5% off its intraday lows in a matter of minutes, briefly touching above the $11 level. The UCO currently boasts about $916 million in assets under management, which is very impressive for a leveraged product, and illustrates strong bullish sentiment among traders, despite bearish crude fundamentals.
Meanwhile, the triple leveraged VelocityShares 3X Long Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return (NYSE:UWTI) saw an even greater spike. UWTI jumped nearly 8% off its intraday lows, hitting as high as 26.41 per share. $0.69 (+2.57%) to $27.50 per share. The fund has over $1.2 billion in assets under management, which makes it one of the most widely-owned leveraged exchange traded products in the markets today.