U.S. Energy Information Administration Cuts Forecast For 2024 World Oil Demand Growth By 480,000 Bpd, Now Sees 0.95M BPD Yr-On-Yr Increase; Cuts Forecast For 2025 World Oil Demand Growth By 30,000 Bpd, Now Sees 1.35M Bpd Yr-On-Yr Increase
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration has revised its forecast for world oil demand growth downwards for both 2024 and 2025. For 2024, the growth forecast has been cut by 480,000 barrels per day (bpd), now expecting a year-on-year increase of 0.95 million bpd. For 2025, the forecast has been reduced by 30,000 bpd, with a new expectation of a 1.35 million bpd year-on-year increase.
April 09, 2024 | 4:07 pm
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NEGATIVE IMPACT
The United States Oil Fund, LP (USO) is likely to be directly impacted by the EIA's revised oil demand forecasts, potentially influencing its short-term price direction.
USO, being directly tied to the performance of oil, is likely to be negatively impacted in the short term by the reduced demand growth forecasts. Lower demand growth can lead to lower oil prices, which would negatively affect USO's price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience indirect impacts due to the revised oil demand forecasts, as energy sector performance influences overall market sentiment.
While SPY is a broad market ETF, changes in oil demand forecasts can affect the energy sector's stocks within the ETF, potentially influencing SPY's performance indirectly. However, the impact is not direct and depends on broader market reactions.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50