Troubling Reversal In Crude Oil (USO)

The price of crude oil gapped higher for the second day in a row and all seemed good on the economic front. After a relatively brief move higher, however, the momentum in crude lost steam in a hurry. Sentiment appears to be changing in the near-term (again), and concerns about Europe are starting to move to the forefront.

The United States Oil Fund (NYSE: USO) is now trading on its lows for the day, down 0.51% to $32.97. NYMEX crude futures have lost 0.46% to $74.33. It should be noted that an important inventory report is also playing into the activity in oil. Inventories came in higher than had been anticipated.