USA Crude Oil Inventories A Draw Of 6.911M Vs A Draw Of 2.704M Est.; Build Of 2.909M Prior
Portfolio Pulse from Benzinga Newsdesk
USA crude oil inventories experienced a significant draw of 6.911 million barrels, surpassing the estimated draw of 2.704 million barrels and contrasting with the prior build of 2.909 million barrels.
December 28, 2023 | 4:00 pm
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POSITIVE IMPACT
The United States Oil Fund LP (USO) is likely to be positively impacted in the short term by the larger-than-expected draw in crude oil inventories, as it directly tracks the price of oil.
USO's performance is closely tied to the price of oil. The significant inventory draw suggests higher demand or lower supply than expected, which is typically bullish for oil prices and thus for USO.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect impact due to the significant draw in crude oil inventories, as energy sector stocks within the index could react.
While SPY is a broad market ETF, the unexpected draw in oil inventories could lead to a positive short-term impact on energy sector stocks within the ETF. However, the overall impact on SPY may be muted due to its diversified nature.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50