U.S. Crude Oil Inventories A Build Of 2.735M Vs A Build Of 1.600M Est.; Build Of 5.841M Prior
Portfolio Pulse from Benzinga Newsdesk
U.S. crude oil inventories increased by 2.735 million barrels, exceeding the estimated build of 1.600 million barrels and following a prior build of 5.841 million barrels. This indicates a continued surplus in oil supply.
April 17, 2024 | 2:30 pm
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NEGATIVE IMPACT
The increase in crude oil inventories may lead to a negative impact on energy sector stocks within the SPY ETF, potentially dragging down its overall performance in the short term.
SPY, being a broad market ETF, includes significant exposure to the energy sector. An oversupply in crude oil suggests lower energy prices, which can negatively affect the profitability and stock performance of energy companies within SPY.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The build in U.S. crude oil inventories is likely to exert downward pressure on oil prices, which could negatively impact USO, an ETF that tracks the price of crude oil.
USO directly tracks the price of crude oil. An increase in oil inventories typically signals an oversupply, which can lead to lower oil prices. This is likely to negatively impact USO's performance in the short term as it reflects the price movements of crude oil.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90