Oil exchange traded funds slipped Thursday after the Organization of Petroleum Exporting Countries failed to agree on a production ceiling, with Iran planning to pump out more crude.
On Thursday, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, dipped 0.3% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, was flat. USO was also testing its 200-day simple moving average.
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Meanwhile, WTI crude oil futures were trading around $49.2 per barrel while Brent crude oil futures were hovering around $50.1 per barrel.
While some in OPEC tried to set a new collective ceiling in a bid to support prices, the Thursday meeting ended with no new policy or ceiling amid resistance from Iran, Reuters reports.
Nevertheless, Saudi Arabia tried to assuage markets, promising to not flood the markets with oil.
“We will be very gentle in our approach and make sure we don’t shock the market in any way,” Saudi Arabia’s new energy minister, Khalid al-Falih, told Reuters. “There is no reason to expect that Saudi Arabia is going to go on a flooding campaign.”[related_stories]