Crude Oil Prices Fall As OPEC+ Meeting Postponed Over Angola And Nigeria Spat
Portfolio Pulse from Neil Dennis
Crude oil prices dropped as OPEC+ postponed a meeting due to a disagreement between Angola and Nigeria over production quotas. Brent Crude and West Texas Intermediate saw declines of 1.3% and 2.4%, respectively. The United States Oil Fund (USO) also fell by 1.1%. The postponement comes amid expectations that OPEC+ might extend production cuts to stabilize prices, with potential additional cuts from Saudi Arabia and Russia. U.S. inventory data showing a larger-than-expected increase in stockpiles also put pressure on oil prices.
November 24, 2023 | 8:18 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The United States Oil Fund (USO) fell by 1.1% following the news of OPEC+'s postponed meeting and the potential increase in oil supply from Angola and Nigeria.
The USO tracks the price of light sweet crude oil, and its price is directly impacted by changes in oil prices. The postponement of the OPEC+ meeting and the potential agreement to raise quotas for Angola and Nigeria suggest an increase in oil supply, which typically leads to lower oil prices and, consequently, a negative impact on USO's price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90