Oil Traders Faced with Mixed Bag of Data (USO) (OIL) (UCO)
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Today traders will be watching developments in Europe for clues about the direction of United States Oil Fund LP ETF (NYSE: USO) and WTI crude oil futures. The situation in Europe reached another precipice recently, and this is being reflected in Spanish Bond yields, which have blown out and are now trading firmly above 7.5 percent.
Spain's difficulties are having a significant effect on Europe's economy and oil demand. According to PMI data today, manufacturing in Europe continues to contract, and this is dragging down expectations for oil and other commodities. On the other hand, preliminary China manufacturing turned higher, and this is helping offset the weak reading in Europe.
On Monday an Iranian commander said the country would not make good on threats to shut the Strait of Hormuz as long as they are using it for shipping, and this has helped ease tension temporarily.
In response to the headlines out of Europe and the Middle East, WTI futures traded lower by nearly $3.50 on Monday. This was the second day of declines after prices tapped $93 per barrel last Thursday. WTI futures currently trade near $88 per barrel. Brent trades near $103 per barrel.
United States Oil Fund LP ETF (NYSE: USO) is expected to open flat to slightly lower, and trading momentum may lack conviction today, as many investors will be focused on slew of earnings releases.
Spain's difficulties are having a significant effect on Europe's economy and oil demand. According to PMI data today, manufacturing in Europe continues to contract, and this is dragging down expectations for oil and other commodities. On the other hand, preliminary China manufacturing turned higher, and this is helping offset the weak reading in Europe.
On Monday an Iranian commander said the country would not make good on threats to shut the Strait of Hormuz as long as they are using it for shipping, and this has helped ease tension temporarily.
In response to the headlines out of Europe and the Middle East, WTI futures traded lower by nearly $3.50 on Monday. This was the second day of declines after prices tapped $93 per barrel last Thursday. WTI futures currently trade near $88 per barrel. Brent trades near $103 per barrel.
United States Oil Fund LP ETF (NYSE: USO) is expected to open flat to slightly lower, and trading momentum may lack conviction today, as many investors will be focused on slew of earnings releases.
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