Saudi Arabia To Cut Output By 1M Barrels/Day, Russia By 0.5M Barrels/Day, Others To Cut More
Portfolio Pulse from Benzinga Newsdesk
Saudi Arabia and Russia have announced significant oil production cuts, with Saudi Arabia reducing output by 1 million barrels per day and Russia by 500,000 barrels per day. Other countries are also expected to cut production further, which could lead to a tightening of global oil supplies.
November 30, 2023 | 2:46 pm
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The United States Oil Fund (USO) is likely to be impacted by Saudi Arabia and Russia's production cuts as it could lead to an increase in oil prices, potentially boosting the value of USO in the short term.
The United States Oil Fund (USO) tracks the daily price movements of West Texas Intermediate light, sweet crude oil. The announced production cuts by major oil-producing countries are likely to reduce the global oil supply, which typically leads to higher oil prices. As USO's performance is directly linked to oil prices, the fund's value is expected to rise in response to these cuts, assuming demand remains constant or increases.
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