EIA Says U.S. Oil Output From Top Shale-Producing Regions Due To Rise To Highest On Record In July; Due To Rise By Least In July Since December 2022; U.S. Permian Oil Output Due To Rise In July To Highest On Record
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) reports that oil output from top shale-producing regions is expected to reach a record high in July, with the least increase since December 2022. U.S. Permian oil output is also due to rise to its highest on record.
June 12, 2023 | 4:56 pm
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NEGATIVE IMPACT
The record high U.S. oil output from top shale-producing regions may negatively impact the USO ETF, as it tracks the daily price movements of West Texas Intermediate (WTI) crude oil.
The increased oil output may lead to an oversupply in the market, potentially causing a decline in oil prices. As USO tracks the daily price movements of WTI crude oil, it may be negatively impacted by this development.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The record high U.S. oil output from top shale-producing regions may positively impact the SPY ETF, as it reflects the overall performance of the U.S. stock market.
The record high oil output indicates a strong performance in the energy sector, which is a significant component of the U.S. stock market. As SPY tracks the overall market performance, it is likely to benefit from this positive development.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50