The Department of Energy reported this morning that in the week ending Aug. 31, U.S. crude oil inventories increased by 4.7 million barrels, gasoline inventories decreased by 0.3 million barrels, distillate inventories increased by 0.1 million barrels and total petroleum inventories increased by 5.7 million barrels.
Crude oil was trading higher after the release of the latest inventory figures. In turn, oil-linked exchange-traded funds such as the United States Oil Fund (USO | B-100) and the VelocityShares 3X Long Crude Oil ETN (UWTI) were also higher on the session after surging during the past week.
YTD Returns For USO, UWTI
If September turns out to be anything like August, this month promises to be an extremely volatile one for crude oil. Last month, prices fell as much as 19 percent before surging sharply to end the period up by more than 4 percent.