API Weekly Crude Oil Stock: 6.490M Barrel Draw vs 1.9M Barrel Draw Est.
Portfolio Pulse from Benzinga Newsdesk
The American Petroleum Institute (API) reported a significant draw of 6.490 million barrels in crude oil stock, far exceeding the estimated draw of 1.9 million barrels. This unexpected reduction in crude oil inventory could impact oil prices and related assets.
May 29, 2024 | 8:40 pm
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POSITIVE IMPACT
The United States Oil Fund (USO) is likely to see a positive impact due to the significant draw in crude oil stock reported by the API. The draw of 6.490 million barrels, compared to the estimated 1.9 million barrels, suggests a tighter supply which could drive oil prices higher.
A larger-than-expected draw in crude oil inventories typically indicates a tighter supply, which can lead to higher oil prices. As USO tracks the price of oil, it is likely to benefit from this news.
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