EIA Forecasts U.S. Crude Oil Output To Rise By 310,000 Barrels/Day In 2024, Vs Previous Forecast For 270,000 Barrels/Day Increase
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) has revised its forecast for U.S. crude oil output in 2024, predicting an increase of 310,000 barrels per day, up from the previous forecast of a 270,000 barrels per day increase.
June 11, 2024 | 4:12 pm
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NEGATIVE IMPACT
The United States Oil Fund (USO) may experience downward pressure due to the EIA's revised forecast for increased U.S. crude oil output in 2024, which could lead to lower oil prices.
USO is directly tied to the price of crude oil. An increase in U.S. crude oil output is likely to lead to lower oil prices, negatively impacting USO in the short term.
CONFIDENCE 80
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 certain sectors while hurting others.
The SPY ETF represents the broader market, which includes both companies that benefit from lower oil prices (e.g., transportation) and those that may be hurt (e.g., energy producers). The net impact is likely to be neutral in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50