API Weekly Crude Oil Stock A Draw Of 6.674M Vs A Draw Of 3.000M Est.; Build Of 0.483M Prior
Portfolio Pulse from Benzinga Newsdesk
The American Petroleum Institute (API) reported a significant draw in crude oil inventories of 6.674 million barrels, surpassing the estimated draw of 3 million barrels and contrasting with the prior build of 0.483 million barrels.
January 23, 2024 | 9:34 pm
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NEUTRAL IMPACT
The SPY ETF, which tracks the S&P 500, may experience indirect effects due to the API's reported draw in crude oil stocks as energy sector stocks could react positively to the news.
While SPY is a broad market ETF, the significant draw in crude oil inventories reported by the API could lead to a positive reaction in energy sector stocks, which are part of the S&P 500. However, the impact on SPY may be muted due to its diversified nature.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The United States Oil Fund (USO), an ETF that tracks the performance of crude oil, is likely to experience a positive short-term impact due to 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. The significant inventory draw reported by the API suggests tighter supply, which typically leads to higher oil prices. This is likely to have a positive impact on USO's performance in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90