API Weekly Crude Oil Stock -0.797M Vs -2.250M Est.; 3.026M Prior
Portfolio Pulse from Happy Mohamed
The American Petroleum Institute (API) reported a weekly crude oil stock decrease of 0.797 million barrels, which is less than the estimated decrease of 2.25 million barrels. The prior week's decrease was 3.026 million barrels.
July 18, 2023 | 8:36 pm
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NEUTRAL IMPACT
The smaller than expected decrease in crude oil stocks may have a neutral to slightly negative impact on SPY, as it indicates a slower than anticipated reduction in oil supply.
SPY, being a broad market ETF, is influenced by a variety of factors, including oil prices. A slower than expected decrease in oil stocks suggests a slower reduction in supply, which could put downward pressure on oil prices and, by extension, on SPY.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
The smaller than expected decrease in crude oil stocks may have a negative impact on USO, as it indicates a slower than anticipated reduction in oil supply, which could put downward pressure on oil prices.
USO, being an ETF that tracks the price of oil, is directly impacted by changes in oil supply and demand. A slower than expected decrease in oil stocks suggests a slower reduction in supply, which could put downward pressure on oil prices and, by extension, on USO.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100