Oil Prices Drop After Netanyahu Says Israel Will Attack Military, Not Oil Or Nuclear Targets In Iran
Portfolio Pulse from Erica Kollmann
Oil prices fell after Israeli PM Netanyahu indicated military targets in Iran would be struck, avoiding oil or nuclear sites. This decision aims to prevent political interference in U.S. elections and avoid raising energy prices. The United States Oil Fund (USO) and ProShares Ultra Bloomberg Crude Oil (UCO) both saw declines following the news and OPEC's reduced oil demand forecasts.
October 14, 2024 | 10:40 pm
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NEGATIVE IMPACT
ProShares Ultra Bloomberg Crude Oil (UCO) fund fell over 2% in regular trading and an additional 4.51% after-hours due to geopolitical tensions and OPEC's reduced oil demand forecasts.
UCO, which leverages crude oil price movements, was impacted by the same factors affecting USO: Israel's military target decision and OPEC's reduced demand forecasts, leading to a significant price drop.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The United States Oil Fund (USO) fell 2.01% due to a combination of geopolitical news from Israel and reduced global oil-demand growth forecasts by OPEC.
USO tracks WTI crude oil prices, which fell due to Israel's decision to target military rather than oil sites in Iran, avoiding a spike in oil prices. Additionally, OPEC's reduced demand forecasts contributed to the decline.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80