U.S. EIA Cuts Forecast For 2024 World Oil Demand Growth By 30,000 Bpd, Now Sees 0.92M Barrels/Day YoY Increase; EIA Raises Forecast For 2025 World Oil Demand Growth By 70,000 Barrels/Day, Now Sees 1.42M Barrels/Day YoY Increase
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) has revised its forecast for global oil demand growth. For 2024, the forecast has been reduced by 30,000 barrels per day (bpd), now expecting a year-over-year increase of 0.92 million barrels per day. Conversely, the forecast for 2025 has been raised by 70,000 bpd, with an anticipated growth of 1.42 million barrels per day year-over-year.
May 07, 2024 | 4:04 pm
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NEUTRAL IMPACT
The EIA's revised oil demand forecast could influence market sentiment, potentially affecting the SPDR S&P 500 ETF Trust (SPY) as changes in oil demand can impact economic growth expectations and, consequently, equity markets.
While the SPY ETF is not directly linked to oil prices, changes in global oil demand forecasts can influence overall market sentiment and economic growth expectations, which in turn can affect the performance of broad market indices like the S&P 500.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The United States Oil Fund, LP (USO) is likely to be directly impacted by the EIA's revised oil demand forecasts, with the 2024 demand cut potentially pressuring prices lower, and the 2025 increase possibly supporting a bullish outlook.
The United States Oil Fund (USO) tracks the price of crude oil directly. Therefore, revisions in global oil demand forecasts, such as those announced by the EIA, can have a significant impact on the fund's performance. The cut in the 2024 forecast could lead to lower oil prices, while the increase in the 2025 forecast could support higher prices.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90