EIA Weekly Distillates Stocks A Build Of 1.485M Vs A Build Of 0.496M Est.; Build Of 1.494M Prior
Portfolio Pulse from Benzinga Newsdesk
The EIA reported a weekly build in distillates stocks of 1.485 million barrels, compared to the estimated build of 0.496 million barrels and the prior week's build of 1.494 million barrels.
December 20, 2023 | 3:30 pm
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NEUTRAL IMPACT
The SPY ETF, which tracks the S&P 500, may experience indirect effects due to the EIA's report on distillates stocks as it can influence energy sector performance.
While the EIA report directly impacts energy stocks, SPY is a diversified fund, and thus the impact is diluted across various sectors. The report may lead to short-term volatility in the energy sector, which is a component of the S&P 500, but the overall effect on SPY is likely to be moderate.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The UNG ETF, which tracks natural gas, is not directly impacted by the EIA's distillates stocks report, as it focuses on a different energy commodity.
The EIA's weekly distillates stocks report primarily affects oil and refined products, not natural gas. Therefore, UNG, which tracks natural gas futures, is not directly impacted by this news. The relevance and importance are low, and the confidence in this analysis is high due to the clear distinction between distillates and natural gas markets.
CONFIDENCE 80
IMPORTANCE 10
RELEVANCE 10
NEGATIVE IMPACT
The USO ETF, which tracks crude oil prices, may be negatively impacted in the short term by the EIA's report showing a larger-than-expected build in distillates stocks.
The EIA's report indicating a larger-than-expected build in distillates stocks suggests potential oversupply in the market, which can lead to lower oil prices. As USO tracks crude oil prices, an increase in supply without a corresponding increase in demand is typically bearish for oil prices, and thus for USO in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80