USA Gasoline Inventories A Build Of 10.900M Vs A Draw Of 0.2M Est.; Draw Of 0.669M Prior
Portfolio Pulse from Benzinga Newsdesk
USA gasoline inventories saw a significant build of 10.900 million barrels, contrasting with the prior draw of 0.669 million barrels. This unexpected increase in gasoline stockpiles could suggest lower demand or higher production levels.
January 04, 2024 | 4:01 pm
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NEUTRAL IMPACT
The build in gasoline inventories is not directly related to natural gas, so the impact on UNG, which tracks natural gas, is likely to be minimal or neutral.
UNG is an ETF that tracks natural gas prices, which are not directly correlated with gasoline inventories. Therefore, the impact of the gasoline inventory build on UNG is expected to be minimal or neutral in the short term.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30
NEGATIVE IMPACT
The build in gasoline inventories may lead to a bearish outlook for energy stocks, potentially impacting the SPY as it includes energy sector companies.
SPY, which tracks the S&P 500, could be negatively impacted in the short term as it holds a variety of energy companies that may be affected by the perceived oversupply in gasoline, leading to potential price decreases in those stocks.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60