USA Crude Oil Inventories A Build Of 1.609M Vs A Draw Of 0.933M Est.; Build Of 8.701M Prior
Portfolio Pulse from Benzinga Newsdesk
USA crude oil inventories increased by 1.609 million barrels, contrary to the estimated draw of 0.933 million. This follows a prior build of 8.701 million barrels.
November 29, 2023 | 3:30 pm
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NEGATIVE IMPACT
The United States Oil Fund (USO) is likely to be negatively impacted in the short term by the reported build in crude oil inventories, as it directly tracks the price of oil.
USO's performance is closely tied to the price of crude oil. An unexpected inventory build suggests potential oversupply, which can depress oil prices and negatively affect USO's price in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect impact due to the unexpected build in crude oil inventories, as energy sector stocks within the index could react.
While SPY is diversified across various sectors, the unexpected increase in oil inventories could lead to a negative reaction in energy sector stocks, which are part of SPY's holdings. However, the overall impact on SPY may be muted due to its broad diversification.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50