EIA Says U.S. Crude Oil Production Rose 195,000 Barrels/Day In Aug To 13.401M Barrels/Day (Vs Revised 13.206M Barrels/Day In July); U.S. July Oil Production Revised Up By 1,000 Barrels/Day To 13.206M Barrels/Day
Portfolio Pulse from Benzinga Newsdesk
The U.S. Energy Information Administration (EIA) reported an increase in U.S. crude oil production by 195,000 barrels per day in August, reaching 13.401 million barrels per day. The July production was revised up by 1,000 barrels per day to 13.206 million barrels per day.
October 31, 2024 | 6:07 pm
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The increase in U.S. crude oil production could lead to a short-term decrease in oil prices, potentially impacting the United States Oil Fund (USO) negatively.
Higher crude oil production typically leads to increased supply, which can put downward pressure on oil prices. As USO tracks the price of oil, this could negatively impact its price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The rise in U.S. crude oil production may have a mixed impact on the SPDR S&P 500 ETF (SPY), as lower oil prices can benefit some sectors while hurting others.
While lower oil prices can reduce costs for oil-consuming sectors, they can also hurt energy companies' revenues. SPY, which tracks the S&P 500, may experience mixed effects as it includes companies from both types of sectors.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50