USA Crude Oil Inventories A Build Of 3.591M Vs A Draw Of 2.600M Est.; Draw Of 2.547M Prior
Portfolio Pulse from Benzinga Newsdesk
USA crude oil inventories reported a build of 3.591 million barrels, contrary to the expected draw of 2.600 million barrels and the prior draw of 2.547 million barrels.
June 26, 2024 | 2:30 pm
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NEGATIVE IMPACT
The unexpected build in crude oil inventories is likely to negatively impact the United States Oil Fund (USO) as it suggests a potential oversupply in the market.
The United States Oil Fund (USO) is directly tied to crude oil prices. An unexpected build in inventories suggests an oversupply, which typically leads to lower oil prices and negatively impacts USO.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The build in crude oil inventories could have a mixed impact on the SPDR S&P 500 ETF (SPY) as it may affect energy sector stocks within the index.
While the SPDR S&P 500 ETF (SPY) is diversified, the energy sector is a component of the index. The build in crude oil inventories could negatively impact energy stocks, but the overall effect on SPY is likely to be neutral due to its broad diversification.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50