API Weekly Crude Oil Stock A Draw Of 7.418M Vs A Draw Of 2.967M Est.; Build Of 1.837M Prior
Portfolio Pulse from Benzinga Newsdesk
The American Petroleum Institute (API) reported a significant draw in crude oil inventories of 7.418 million barrels, compared to the estimated draw of 2.967 million barrels and the prior build of 1.837 million barrels.
January 03, 2024 | 9:33 pm
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NEUTRAL IMPACT
The SPY ETF, which tracks the S&P 500, may experience indirect impact due to the API's reported draw in crude oil stocks as energy sector stocks could react.
While the SPY ETF is diversified across various sectors, a significant draw in crude oil inventories can affect energy sector stocks, which in turn may have a mild impact on the overall performance of the SPY ETF in the short term.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The United States Oil Fund (USO), which tracks the price of crude oil, is likely to be positively impacted in the short term by the larger-than-expected draw in crude oil inventories reported by the API.
The United States Oil Fund (USO) closely tracks the price of crude oil. A significant draw in oil inventories typically suggests higher demand or lower supply, which can lead to an increase in oil prices and, consequently, a positive impact on USO's price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90