OPEC+ To Consider Whether To Deepen Oil-Output Cuts At Next Meeting On Nov. 26
Portfolio Pulse from Benzinga Newsdesk
OPEC+ is reportedly considering deepening oil-output cuts at their next meeting on November 26, according to Reuters citing three OPEC+ sources. This potential decision could affect global oil supply and prices.
November 17, 2023 | 5:20 pm
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The United States Oil Fund (USO) could be impacted by OPEC+'s consideration to deepen oil-output cuts, as it tracks the daily price movements of West Texas Intermediate light, sweet crude oil. A reduction in supply could lead to higher oil prices, potentially benefiting USO in the short term.
The USO ETF is directly tied to the price of oil. If OPEC+ agrees to cut oil production further, this typically leads to a decrease in supply, which can drive up oil prices. Higher oil prices generally have a positive effect on oil-related ETFs like USO, as the fund's value is derived from the price of oil.
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