'OPEC+ Mulls New Oil Production Cuts Amid Middle East Conflict; Saudi Arabia Favors Curb Of Up To 1M Barrels A Day, While Other Members Oppose Downgrading Quotas' - WSJ
Portfolio Pulse from Benzinga Newsdesk
OPEC+ is contemplating new oil production cuts up to 1 million barrels a day due to the ongoing Middle East conflict. The decision could be made at a virtual meeting and may result in higher oil prices. The meeting was delayed from last week because of disagreements on production levels.
November 29, 2023 | 5:46 pm
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POSITIVE IMPACT
The Energy Select Sector SPDR Fund (EIS), which includes companies from the energy sector, could see its value increase if OPEC+ cuts boost oil prices.
EIS tracks energy companies that could benefit from higher oil prices due to reduced supply. The potential OPEC+ cuts are likely to increase oil prices, positively impacting EIS constituents.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
The United States Oil Fund (USO), which tracks the daily price movements of West Texas Intermediate crude oil, could experience a price increase if OPEC+ agrees to production cuts.
USO is directly tied to the price of crude oil. The proposed OPEC+ production cuts are expected to tighten supply and push oil prices up, which would likely lead to an increase in USO's value.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 80