Crude Oil Traders Brace for Inventory, Draghi, and Jobs (USO) (OIL) (UCO)

September 5, 2012 10:31 AM EDT
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United States Oil (NYSE: USO) is trading lower on Wednesday. Investors are awaiting weekly inventory data due from the American Petroleum Institute on Wednesday and data from the EIA on Thursday, a day later than usual because of a U.S. holiday this week. A Reuters survey showed analysts expect a drop of 5.3 million barrels.

Traders are also hoping for an announcement by the ECB president Mario Draghi. He is expected to give details of his proposed bond buying plan tomorrow, and many investors hope this will help stabilize economies in Europe and Brent prices as a result.

Crude oil traders and investors are also looking ahead to Friday’s payroll report in the U.S. Large employment gains could push back Fed plans to jolt the U.S. economy with another around of quantitative easing. This is seen as a negative for oil.

Brent futures are trading at $113 per barrel and WTI trades at $94.50. United States Oil ETF (NYSE: USO) and iPath S&P GSCI Crude Oil Total Return ETF (NYSE: OIL) are lower by 1 percent.

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