U.S. EIA Says Total Petroleum Consumption To Rise By 200,000 Barrels/Day To 20.4M Barrels/Day In 2024 (The Same As Previously Forecasted)
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) forecasts that total petroleum consumption will increase by 200,000 barrels per day, reaching 20.4 million barrels per day in 2024, maintaining its previous forecast.
March 12, 2024 | 5:31 pm
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POSITIVE IMPACT
The United States Oil Fund (USO) is likely to be directly impacted by the EIA's forecast of increased petroleum consumption, potentially leading to higher oil prices.
The United States Oil Fund (USO) directly tracks the price of oil. An increase in petroleum consumption as forecasted by the EIA could lead to higher demand for oil, potentially driving up oil prices and, consequently, the value of USO.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see indirect effects from the EIA's petroleum consumption forecast due to its exposure to energy sector companies.
While the EIA's forecast directly impacts the energy sector, SPY, as a broad market ETF, has diversified exposure across various sectors, including energy. The forecast could influence energy stocks within SPY's holdings, but the overall impact on SPY will be diluted due to its broad diversification.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50