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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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
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