OPEC+ output cut on tap, ADP report and more: Wednesday's 5 things to know
Traders will have a slew of economic reports to digest including data on private sector hiring, international trade and the services sector
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Here are the key events taking place on Wednesday that could impact trading.
OIL MEETING: OPEC+ meets on Wednesday and may be set for a large cut in oil output.
The potential OPEC+ cut could spur a recovery in oil prices, believed to have dropped from $120 three months ago to about $90 due to fears of a global economic recession, rising U.S. interest rates and a stronger dollar, according to Reuters.
OPEC+, which includes Saudi Arabia and Russia, is working on cuts in excess of 1 million barrels per day, sources told Reuters this week.
OPEC+ MEETING MAY CONSIDER OUTPUT CUT THIS WEEK: REPORT
FILE PHOTO: A 3D-printed oil pump jack is seen in front of the OPEC logo in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/File Photo (REUTERS/Dado Ruvic/File Photo / Reuters Photos)
One OPEC source said on Tuesday the cuts could amount to up to 2 million barrels a day.
ADP REPORT: The payroll processing firm releases its National Employment report for September.
Economists anticipate a gain of 200,000 private-sector jobs. That would be an improvement from a disappointing 132,000 new jobs in August, which was less than half the 288,000 estimate.
JOB OPENINGS UNEXPECTEDLY PLUNGE IN AUGUST TO LOWEST LEVEL SINCE JUNE 2021
TRADE BALANCE: The monthly deficit in goods and services for July is expected to narrow for the fifth month in a row to $67.7 billion.
Port Long Beach California (iStock / iStock)
That would be the smallest since May 2021, and a steep reversal from $107.6 billion in March, when the deficit hit a record on huge demand for imported goods and rising prices tied to inflation.
SERVICES PMI: The Institute for Supply Management releases its non-manufacturing PMI for September. This key gauge of services sector activity is expected to slip to 56.0. That’s after rising unexpectedly in August to the highest since April on solid growth in new orders. Keep in mind 50 is the dividing line between an expanding and contracting services sector.
Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery. (REUTERS/Bing Guan / Reuters Photos)
OIL INVENTORIES: The DOE’s Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to rise just over 2 million barrels, following a slight but unexpected draw of 215,000 barrels the previous week.
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Watch for declines of around 1.35 million barrels each in distillate (heating oil, diesel fuel) and gasoline inventories.