What to Watch Tuesday: Oil Traders Keeping Eye on API Crude Report
In 'What to Watch on Wall Street' for Tuesday January 5, there are several key economic reports slated to be released. Throughout the day, motor vehicles sales figures for the month of December will be released. Other reports include the Redbook, which is due out at 8:55 a.m. Eastern, followed by the crude oil inventory data from the American Petroleum Institute in the afternoon. There are a few reasons why oil traders will keep an eye on this data. It comes right before the closely-watched report from the EIA on Wednesday morning. It'll give investors some clues about oil futures. Last week, inventories increased by 2.9 million barrels so we'll look to see if we get another increase or a decline in stockpiles. TheStreet's Portfolio Analyst Scott Berman said, 'The oil trade kind of has two competing factors right now. The first is the ongoing supply problem which is where we're kind of looking at the API report. Now, if we get a build in this report, that typically would push prices even further but if we get a draw, that could add an extra boost to push prices higher especially with the increasing tensions in the Middle East that's adding to the uncertainty around the supply possibilities in those major producing nations.' On the earnings front, the one major company set to release its quarterly report is Sonic (SONC), the fast food restaurant chain. TheStreet's U-Jin Lee reports from Wall Street.
