Oil is trading lower after the EIA cut its forecast for 2024 world demand growth.
Portfolio Pulse from Benzinga Newsdesk
Oil prices have declined following the Energy Information Administration's (EIA) revision of its 2024 world demand growth forecast downwards.
April 09, 2024 | 4:45 pm
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NEGATIVE IMPACT
BNO's price is likely to experience downward pressure in the short term due to the EIA's reduced forecast for world oil demand growth in 2024.
As BNO tracks the price of Brent crude oil, a downward revision in demand forecasts by the EIA directly impacts expectations for oil prices, potentially leading to lower fund performance in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
USO is expected to face short-term negative impact due to the EIA's downward revision of its 2024 world oil demand growth forecast.
Given USO's investment in futures contracts for WTI crude oil, a decrease in expected global demand growth for oil as forecasted by the EIA can lead to a decrease in oil prices, negatively affecting USO's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80