EIA Says U.S. Crude Oil Production Is Expected To Rise By 180,000 Barrels/Day To 13.11M Barrels/Day In 2024 (Vs Previously Forecast Rise Of 250,000 Barrels/Day)
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) has revised its forecast for U.S. crude oil production in 2024, now expecting an increase of 180,000 barrels per day, reaching 13.11 million barrels per day. This is a downward revision from the previously forecasted rise of 250,000 barrels per day.
December 12, 2023 | 5:29 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect impact due to the EIA's revised oil production forecast, as energy sector weightings in the S&P 500 could be affected by changes in oil production expectations.
While the EIA's report directly impacts the energy sector, SPY is a diversified fund, and the effect on the overall ETF will be diluted. The impact is more indirect and will depend on how the energy sector reacts to the news.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
The United States Oil Fund LP (USO) is likely to be directly impacted by the EIA's revised oil production forecast, as it tracks the daily price movements of West Texas Intermediate light, sweet crude oil.
USO's value is closely tied to crude oil prices, which can be affected by changes in production forecasts. The downward revision in production growth could suggest tighter supply and potentially higher oil prices, which would be positive for USO. However, market dynamics are complex, and other factors could mitigate this impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80