Oil Slides As Economic Worries Eclipse Saudi Output Cut — Why $80/Bbl Price Is Crucial For The Kingdom
Portfolio Pulse from Bhavik Nair
Oil prices slid on Tuesday due to concerns over the global economy, overshadowing Saudi Arabia's unexpected production cut announcement. The fall in oil prices is unfavorable for Saudi Arabia, which requires oil prices above $80 per barrel to balance its budget, according to an IMF report.
June 06, 2023 | 9:09 am
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NEGATIVE IMPACT
US Brent Oil Fund (BNO) closed 0.078% higher on Monday, but oil prices slid on Tuesday due to global economic concerns, potentially impacting BNO's performance.
The fall in oil prices on Tuesday is likely to have a negative impact on BNO's performance, as it is directly linked to the price of Brent crude oil. The global economic concerns driving the decline in oil prices could continue to weigh on BNO's performance in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Vanguard Energy Index Fund ETF (VDE) lost 0.71% on Monday, and the slide in oil prices on Tuesday due to global economic concerns may continue to negatively impact VDE's performance.
The decline in oil prices on Tuesday is likely to have a negative impact on VDE's performance, as it is an energy-focused ETF. The global economic concerns driving the decline in oil prices could continue to weigh on VDE's performance in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80