Oil lower ahead of OPEC+ meeting
Oil inched lower on Wednesday after gains in recent days as OPEC+ producers looked set to agree deep output target cuts at the group’s meeting in Vienna.
U.S. West Texas Intermediate (WTI) crude traded around $86.00 a barrel.
Brent crude was around $91.00 a barrel.
Both contracts rose sharply in the last two days.
The United States is pressing OPEC+ producers to avoid making deep cuts, a source familiar with the matter told Reuters, as President Joe Biden looks to prevent a rise in U.S. gasoline prices.
Gasoline price continues to climb
The average price of a gallon of gasoline gained again on Wednesday to $3.831, according to AAA.
Tuesday’s price was $3.805.
Gas hit a high of $5.016 on June 14.
Diesel’s price slipped to $4.866 per gallon.
Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were lower Wednesday morning
Bitcoin was trading around $20,000, after a two-day winning streak.
For the week, Bitcoin was trading more than 6% higher.
The cryptocurrency is down more than 56% year-to-date.
Ethereum was trading around $1,300, after a gain of 2% in the past week.
Dogecoin was trading at 6 cents, after gaining more than 8% in the past week.
Wednesday’s 5 things to know
Here are the key events taking place on Wednesday that could impact trading.
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.
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.
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.
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.
OIL INVENTORIES: The DOE’s Energy Information Administration will release its inventory report for last week.
Click here for more on Wednesday’s key events: OPEC+ output cut on tap, ADP report and more
Sen. Marshall introduces bills designed to prevent IRS overreach following agency expansion
EXCLUSIVE – Sen. Roger Marshall, R-Kan., introduced two pieces of legislation meant to prevent overreach at the Internal Revenue Service after President Biden signed a law expanding the agency.
The two bills, obtained exclusively by Fox Business, were introduced in response to Democrats’ Inflation Reduction Act.
The Preventing Frivolous Actions by IRS Agents Act would compensate eligible U.S. taxpayers who are incorrectly hit with a failed IRS audit. Under the bill, taxpayers would be paid following the disposition of their case, which includes the completion of judicial proceedings.
The bill defines an eligible taxpayer as a “taxpayer whose gross income for the taxable year in which the audit is commenced does not exceed $400,000, and who is not convicted of any crime related to the audit.”
“Joe Biden and the Democrats stuck working and middle-class Kansans with a massive spending scam that gives the IRS the green light to aggressively snoop around in their personal finances,” Marshall said. “Defending a frivolous audit is expensive and the IRS should pay the bill, not innocent Americans who were wrongly targeted by an overzealous federal accountant.”
Read more on the story by clicking here: Sen. Marshall introduces bills designed to prevent IRS overreach following agency expansion
US home prices likely headed for sharp plunge, Wall Street firms warn
U.S. home prices are finally falling from record highs notched earlier this year, and they are likely to see even steeper declines in coming months as the Federal Reserve ratchets up its fight against inflation.
Prices are already posting the most significant monthly declines since the 2009 housing crash, according to a new release from Black Knight Data & Analytics. Median home prices tumbled 0.98% in August from a month earlier, following a 1.05% drop in July. In total, median home prices are down 2% since their June peak.
“Together, they represent two straight months of significant pullbacks after more than two years of record-breaking growth,” said Black Knight President Ben Graboske.
Recent outlooks from major Wall Street firms suggest this is just the beginning of what’s likely to be a sharp plunge in U.S. home prices.
Morgan Stanley anticipates that home prices could tumble another 7% by the end of 2023.
For more on the story, click here: Housing market in the United States headed for major slowdown