Crude Oil (USO) Hit by Perfect Storm of Negative Data
Tweet Send to a Friend
Get Alerts USO Hot Sheet
Trade USO Now!
United States Oil Fund LP ETF (NYSE: USO) is getting slammed again this morning as WTI futures break below $81 per barrel. Crude oil prices and USO are getting hit by a triple threat from slowing growth, building inventory, and higher OPEC output.
Flash PMI data out of China yesterday showed weakening. The PMI index registered growth of 48.1, below last months reading of 48.4 and significantly lower than a healthy reading above 50. Euro area PMI also showed slow growth, registering a reading go 46.0.
Weekly crude oil inventory data in the U.S. helped to undermine USO. Traders yesterday were surprised to learn that inventory in the U.S. increased by 2.86 million barrels last week. Forecasts called for a 1 million barrel decline. Meanwhile, OPEC production levels remain high and key member state, Saudi Arabia, is comfortable with OPEC's high level of output.
The combination of weakening growth and higher inventory and production is creating a perfect storm of negative sentiment. United States Oil ETF is lower by over 13 percent in the past 30 days and may test lower again today as WTI searches for a bottom.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Flash PMI data out of China yesterday showed weakening. The PMI index registered growth of 48.1, below last months reading of 48.4 and significantly lower than a healthy reading above 50. Euro area PMI also showed slow growth, registering a reading go 46.0.
Weekly crude oil inventory data in the U.S. helped to undermine USO. Traders yesterday were surprised to learn that inventory in the U.S. increased by 2.86 million barrels last week. Forecasts called for a 1 million barrel decline. Meanwhile, OPEC production levels remain high and key member state, Saudi Arabia, is comfortable with OPEC's high level of output.
The combination of weakening growth and higher inventory and production is creating a perfect storm of negative sentiment. United States Oil ETF is lower by over 13 percent in the past 30 days and may test lower again today as WTI searches for a bottom.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Coal on Watch as Top-Exporter Expected to See Lower Prices in June (ACI) (CNX) (BTU)
- Initial Claims Fall More than Expected to 334K as Economic Data Shapes Up
- UPDATE: April Business Inventory 0.3% vs 0.3% Expected
Create E-mail Alert Related Categories
Commodities, ETFs, Economic DataRelated Entities
Oil Inventories, Crude Oil, OPEC
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
