Oil Prices Fall After Angola Says It Will Quit OPEC
Portfolio Pulse from Neil Dennis
Oil prices dropped after Angola announced plans to leave OPEC, causing concerns about adherence to production quotas. Brent crude fell 1.1% to $78.80 a barrel, and West Texas Intermediate crude decreased by 1.2% to $73.29. The United States Oil Fund (USO) saw a 0.2% decline in response to the news. Angola's departure raises questions about future production levels and investment, particularly as the country has struggled to meet its quotas in the past.
December 21, 2023 | 8:27 pm
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The United States Oil Fund (USO) experienced a slight decline of 0.2% following Angola's announcement to leave OPEC and the subsequent drop in oil prices.
Angola's decision to leave OPEC may lead to increased production outside of the cartel's quotas, potentially lowering oil prices further. As USO tracks the price of light-sweet crude, a decrease in oil prices directly affects the fund's performance. The short-term impact is likely negative due to market concerns over quota adherence and potential oversupply.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80