U.S. EIA Now Expects U.S. Crude Oil Output To Rise To 13.24M Barrels In 2024, Vs 13.20M Forecast In May
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) has revised its forecast for U.S. crude oil output in 2024, now expecting production to rise to 13.24 million barrels per day, up from the previous forecast of 13.20 million barrels per day made in May.
June 11, 2024 | 4:10 pm
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NEGATIVE IMPACT
The U.S. EIA's revised forecast for increased crude oil output in 2024 is likely to put downward pressure on oil prices, which could negatively impact the United States Oil Fund (USO).
USO is directly tied to the price of crude oil. An increase in oil production typically leads to lower prices, which would negatively impact the fund's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The revised forecast for increased U.S. crude oil output in 2024 could have a mixed impact on the broader market, as represented by SPY. Higher oil production may lead to lower oil prices, which can benefit sectors like transportation but hurt energy stocks.
The SPY ETF represents a broad market index, and the impact of higher oil production can be mixed. While lower oil prices can benefit certain sectors, they can also negatively affect energy stocks within the index.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50