EIA Weekly Distillates Stocks A Draw Of 1.417M Vs A Build Of 0.348M Est.; Build Of 2.370M Prior
Portfolio Pulse from Benzinga Newsdesk
The EIA reported a draw in weekly distillates stocks of 1.417 million barrels, contrasting with the estimated build of 0.348 million barrels and the prior week's build of 2.370 million barrels.
January 24, 2024 | 3:30 pm
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POSITIVE IMPACT
The United States Oil Fund (USO) may see short-term price movements due to the EIA's report showing a draw in distillates stocks, which can affect perceptions of oil supply and demand.
The EIA's report on a draw in distillates stocks suggests tighter oil supplies than expected, which can lead to upward pressure on oil prices. As USO tracks the price of crude oil, this report could positively impact USO's price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect effects due to the EIA's report on distillates stocks, as energy sector performance can influence the broader market.
While the EIA report directly impacts energy stocks, SPY is a diversified fund, and thus the effect is diluted across various sectors. The report may lead to short-term volatility in the energy sector, which could have a ripple effect on the broader market that SPY represents.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The United States Natural Gas Fund (UNG) is not directly affected by the EIA's distillates stocks report, as it is focused on natural gas, which is separate from distillate fuel inventories.
The EIA's weekly distillates stocks report pertains to products like diesel and heating oil, not natural gas. Therefore, the report has little to no direct impact on UNG, which is focused on natural gas futures.
CONFIDENCE 90
IMPORTANCE 10
RELEVANCE 10