USA Gasoline Inventories A Build Of 5.421M Vs A Build Of 1.027M Est.; Build Of 1.764M Prior
Portfolio Pulse from Benzinga Newsdesk
USA gasoline inventories saw a significant increase with a build of 5.421 million barrels, surpassing the estimated build of 1.027 million barrels and the prior build of 1.764 million barrels. This unexpected rise in gasoline inventories could suggest lower demand or higher production levels, potentially impacting energy sector stocks and ETFs.
December 06, 2023 | 3:31 pm
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NEGATIVE IMPACT
The United States Oil Fund (USO) could see a negative impact in the short term due to the build in gasoline inventories, as it may indicate lower demand for oil products, which can affect crude oil prices.
USO tracks the daily price movements of West Texas Intermediate light, sweet crude oil. A significant build in gasoline inventories can suggest lower demand for oil products, which could lead to a decrease in crude oil prices and negatively affect USO's performance in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect impact due to the build in gasoline inventories as it reflects the performance of the S&P 500, which includes energy sector companies.
While SPY is diversified across various sectors, a significant change in gasoline inventories can affect energy sector stocks within the S&P 500, thereby having a potential indirect impact on SPY's performance. However, the effect may be muted due to the ETF's broad exposure.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The United States Natural Gas Fund (UNG) is unlikely to be directly impacted by the gasoline inventory data as it is focused on natural gas futures and not gasoline inventories.
UNG's focus is on natural gas, and therefore, the build in gasoline inventories is not directly relevant to its performance. The impact on UNG is expected to be minimal if any.
CONFIDENCE 90
IMPORTANCE 10
RELEVANCE 10