Saudi Oil Output Plunges to 1990 Low as Houthi Attacks Squeeze Exports
USOI is trading near its 52-week low of $41.9 (12% above the low) on light trading volume (0.1× avg).
Summary
Saudi Arabia's crude production collapsed to 6.23M bbl/day in August, the lowest since 1990, after Houthi attacks and a maritime embargo choked Red Sea exports. Exports fell to 3.1M bbl/day from 5.1M bbl/day in July. The Houthis seized the port of Mocha, threatening the Bab el-Mandeb Strait. Crude futures jumped 3.3% to $99.22/bbl (Nymex) and $104.58/bbl (Brent). For USOI, an oil-price-linked ETN, this supply shock is directly bullish for its underlying index. Watch for further escalation in the Red Sea and any OPEC+ response.
At the time of this announcement, USOI was trading at $46.80 on NASDAQ in the Energy & Transportation sector. The 52-week trading range was $41.90 to $61.30. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.