The cartel, led by Saudi Arabia, has been uniting with Russia and other producers to slowly release supply as economies and energy demand recovered from the pandemic. OPEC+ is set to reverse its production curbs by the end of the summer while continuing to work together throughout 2022.
“I would like OPEC to retain its tools to measure and control output and maintain the existing balance,” Iraqi Oil Minister Ihsan Abdul Jabbar said in an interview. “We will discuss that with our partners.” OPEC+ meets again on August 3.
Meanwhile, although he remained upbeat in his speech, President Biden failed to accomplish meaningful change after meeting with Saudi leaders.
“The United States is invested in building a positive future of the region, in partnership with all of you — and the United States is not going anywhere,” Biden said, according to a transcript of his speech.
This could be good news for ETF traders who favor crude oil. Crude ETFs like the United States Oil Fund (USO) and the ProShares Ultra Bloomberg Crude Oil (UCO) could see potentially massive gains, while short ETFs like the ProShares UltraShort Bloomberg Crude Oil (SCO) could suffer with rising prices.
For investors looking for crude ETFs to play the run-up in oil, which has been fairly steady since November, the United States 12 Month Oil Fund (USL) and the iPath Pure Beta Crude Oil ETN (OIL) are two other funds to consider.
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