Kuwait Plans To Reach 4M B/D Oil Capacity In 2035
Portfolio Pulse from Charles Gross
Kuwait plans to reach 4 million barrels per day (B/D) oil capacity by 2035, according to a conference video cited by Reuters. The United States Oil Fund (USO) may be impacted by this news.
October 09, 2023 | 11:20 am
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The United States Oil Fund (USO) could be impacted by Kuwait's plan to increase its oil capacity. An increase in global oil supply could potentially lower oil prices, which may negatively affect USO.
The United States Oil Fund (USO) is an exchange-traded fund (ETF) that seeks to track the price of West Texas Intermediate (WTI) light, sweet crude oil. Kuwait's plan to increase its oil capacity could lead to an increase in the global supply of oil. If demand remains constant, this could potentially lower oil prices. As USO's value is tied to the price of oil, a decrease in oil prices could negatively impact the fund.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80