Oil prices rose on Wednesday after data showed the U.S. market was beginning to tighten, with falling supply and lower inventories after two years of heavy surplus. U.S. crude stocks decreased by 1.2 million barrels last week while distillate stockpiles also fell, data from industry group the American Petroleum Institute (API) showed. The figures suggest U.S. oil production, particularly from shale, is beginning to decline in response to the collapse in prices over the last year. Also, we have an extremely favorable technical picture on weekly WTI nearest futures chart. We have a double divergence between price and OBV and a breakout of bear trend's resistance. Chart 1. WTI nearest futures, weekly Overseas oil companies reacting very positive to higher oil prices. In Hong Kong CNOOC skyrocketed 13.7 percent, Petro China jumped 9.2 percent and Kunlun Energy Co. advanced 8.5 percent. So, I think today is really a great time to buy Energy Select Sector SPDR (XLE).