EIA Weekly Distillates Stocks A Draw Of 2.753M Vs Build Of 3.454M Prior
Portfolio Pulse from Benzinga Newsdesk
The EIA reported a weekly draw of 2.753 million barrels in distillate stocks, contrasting with the previous week's build of 3.454 million barrels.
July 24, 2024 | 2:30 pm
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NEUTRAL IMPACT
The EIA's report of a draw in distillate stocks may have a mixed impact on SPY, as higher oil prices can increase costs for many companies within the S&P 500.
While higher oil prices can benefit energy companies, they can also increase operational costs for other sectors within the S&P 500, leading to a neutral overall impact on SPY.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
The EIA's report of a 2.753 million barrel draw in distillate stocks is likely to positively impact the United States Oil Fund (USO) as it indicates a tightening supply.
A draw in distillate stocks suggests a decrease in supply, which typically leads to higher oil prices. This is beneficial for USO, an ETF that tracks the price of oil.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80