Crude Oil Inventories 1.234M Barrel Build vs 217K Barrel Draw Est.
Portfolio Pulse from Benzinga Newsdesk
The latest report indicates a 1.234 million barrel build in crude oil inventories, which contrasts with the estimated 217 thousand barrel draw. This unexpected increase in oil stockpiles suggests a potential oversupply in the market.
January 31, 2024 | 3:30 pm
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The United States Oil Fund (USO) may experience negative pressure due to the reported build in crude oil inventories, contrary to the expected draw.
The United States Oil Fund (USO) tracks the daily price movements of West Texas Intermediate light, sweet crude oil, and is therefore sensitive to changes in oil inventories. A build in inventories can imply a lower demand or oversupply, which typically leads to lower oil prices and could negatively affect USO's share price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80