12% Of Oil Production At U.S. Gulf Of Mexico Shut Aftermath Of Storm Francine; 16% Of Natural Gas Production At U.S. Gulf Of Mexico Shut Aftermath Of Storm Francine
Portfolio Pulse from Benzinga Newsdesk
Storm Francine has led to the shutdown of 12% of oil production and 16% of natural gas production in the U.S. Gulf of Mexico, as reported by Reuters citing BSEE.
September 16, 2024 | 6:04 pm
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NEUTRAL IMPACT
The shutdown of oil and natural gas production in the Gulf of Mexico due to Storm Francine may have a mixed impact on SPY, with potential effects on energy sector stocks.
While the energy sector within SPY might see some volatility due to production shutdowns, the overall impact on SPY is likely to be neutral given its diversified nature.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
The shutdown of 12% of oil production in the U.S. Gulf of Mexico due to Storm Francine could lead to a short-term increase in oil prices, potentially benefiting USO.
The reduction in oil supply from the Gulf of Mexico is likely to create upward pressure on oil prices, which could positively impact USO, an ETF that tracks oil prices.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80