Oil Prices Slide As OPEC+ Postpones Output Meeting, Delays Decision On Supply Adjustments
Portfolio Pulse from Surbhi Jain
Oil prices dropped as OPEC+ postponed their 187th meeting, delaying decisions on supply adjustments. The meeting, originally scheduled for Nov. 25-26, is now set for Nov. 30. Crude oil futures fell 2.5% to $75.80, and the United States Oil Fund, LP ETF (USO) decreased by 2.3% to $70.78. The delay comes amid a 20% drop in oil prices since September due to supply and demand concerns and economic slowdown fears. The upcoming meeting will discuss supply limits into 2024, with Saudi Arabia's potential extension of a 1 million barrel-a-day curb being a focal point.
November 22, 2023 | 6:02 pm
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NEGATIVE IMPACT
The United States Oil Fund, LP ETF (USO) fell 2.3% to $70.78 following news of OPEC+'s postponed meeting and the decline in crude oil prices.
The postponement of the OPEC+ meeting suggests potential volatility and uncertainty in oil supply adjustments, which directly impacts oil prices and related ETFs like USO. The short-term impact is negative due to the immediate price reaction and ongoing concerns about supply and demand dynamics.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90