USA API Weekly Crude Oil Stock A Build Of 0.594M Vs A Draw Of 2.267M Est.; Draw Of 0.817M Prior
Portfolio Pulse from Benzinga Newsdesk
The latest USA API Weekly Crude Oil Stock report indicated a build of 0.594 million barrels, contrary to the estimated draw of 2.267 million barrels. This is a shift from the prior week's draw of 0.817 million barrels.
December 05, 2023 | 9:37 pm
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NEGATIVE IMPACT
The USO ETF, which tracks the performance of crude oil, may face a negative short-term impact due to the reported build in crude oil stocks, which is bearish for oil prices.
The USO ETF is directly tied to the performance of crude oil. An increase in oil inventories typically suggests lower demand or higher supply, which can lead to lower oil prices and negatively affect USO in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPY ETF, which tracks the S&P 500, may experience indirect effects due to the unexpected build in crude oil stocks, as energy sector stocks could react to this news.
While SPY is a broad market ETF, the unexpected increase in crude oil stocks could lead to a negative reaction in energy sector stocks, which are part of the S&P 500. However, the overall impact on SPY may be muted due to its diversified nature.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50