USA Crude Oil Inventories A Build Of 1.367M Vs A Build Of 2.400M Est.; Build Of 4.199M Prior
Portfolio Pulse from Benzinga Newsdesk
USA crude oil inventories increased by 1.367 million barrels, which is lower than the estimated build of 2.400 million barrels and the previous build of 4.199 million barrels.
March 06, 2024 | 3:30 pm
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POSITIVE IMPACT
The lower-than-expected build in crude oil inventories may have a neutral to slightly positive impact on SPY as it reflects a potentially stronger demand or lower supply in the oil market.
SPY, being a broad market ETF, may react to changes in energy market dynamics as they affect overall economic outlooks. However, the direct impact of crude inventory data on SPY is often muted unless there are significant surprises.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
The reported build in crude oil inventories being lower than expected is likely to have a positive short-term impact on USO, as it suggests tighter supply conditions.
USO directly tracks the price of crude oil. A lower-than-expected increase in inventories suggests that supply is not outpacing demand as much as anticipated, which can lead to higher oil prices and, consequently, a positive impact on USO.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80