U.S. EIA Expects Brent Crude Spot Price To Be Around $90/Barrel For Rest Of 2024 On OPEC+ Oil Production Cuts, Ongoing Geopolitical Risks
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) forecasts the Brent crude spot price to average around $90 per barrel for the remainder of 2024, attributing this to OPEC+ oil production cuts and ongoing geopolitical risks, according to Reuters.
May 07, 2024 | 4:22 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see indirect effects from the EIA's oil price forecast, as higher energy costs could influence overall market sentiment and inflation expectations.
While SPY tracks a broad range of sectors, including energy, the indirect impact of higher oil prices on inflation and economic sentiment could affect its performance. The extent of this impact is uncertain, hence the neutral score.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The United States Oil Fund (USO) is likely to experience positive price movements as the EIA forecasts higher oil prices due to OPEC+ production cuts and geopolitical risks.
USO, which tracks the daily price movements of West Texas Intermediate light, sweet crude oil, is directly impacted by changes in oil prices. The EIA's forecast suggests a bullish market for crude oil, potentially leading to increased investor interest in USO.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90