U.S. EIA Forecasts New Well Oil Production Per Rig At 1,842 Barrels/Day For Bakken (Vs 1,833 Barrels/Day Month Ago); 1,346 Barrels/Day For Permian (Vs 1,332 Barrels/Day Month Ago); 1,634 Barrels/Day For Eagle Ford (Vs 1,629 Barrels/Day Month Ago)
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) forecasts an increase in new well oil production per rig across major regions. The Bakken region is expected to produce 1,842 barrels/day, up from 1,833 barrels/day a month ago. The Permian region is forecasted to produce 1,346 barrels/day, an increase from 1,332 barrels/day. The Eagle Ford region's production is estimated at 1,634 barrels/day, up from 1,629 barrels/day previously.
January 16, 2024 | 6:33 pm
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POSITIVE IMPACT
The SPY ETF, which tracks the S&P 500, may see a positive impact as increased oil production can signal growth in the energy sector, potentially boosting the performance of energy stocks within the index.
The SPY ETF includes a variety of energy companies that could benefit from increased oil production, leading to improved earnings and stock performance. However, the impact is diluted across the diverse sectors represented in the ETF.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The United States Oil Fund (USO) is likely to be positively impacted in the short term as the EIA's forecast for increased oil production per rig may lead to expectations of higher supply and potentially influence oil prices.
USO tracks the daily price movements of West Texas Intermediate light, sweet crude oil. Increased production forecasts could suggest a change in supply dynamics, which is a direct driver of oil prices and thus the performance of USO.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80