API Weekly Crude Oil Stock 423K Barrel Build vs 2.6M Barrel Build Est.
Portfolio Pulse from Benzinga Newsdesk
The API reported a weekly crude oil stock build of 423K barrels, significantly lower than the estimated 2.6M barrel build. This suggests a tighter oil supply than expected.
March 05, 2024 | 9:39 pm
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The United States Oil Fund (USO) may experience short-term price increases due to the reported lower-than-expected crude oil stock build, indicating a tighter oil supply.
The United States Oil Fund (USO) tracks the price of crude oil. A lower-than-expected increase in crude oil stocks suggests a tighter supply relative to demand, which typically leads to higher oil prices. As USO's value is directly influenced by crude oil prices, a tighter supply could result in a short-term increase in USO's price.
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