This article was originally published on ETFTrends.com.
Crude oil prices and energy-related exchange traded funds stumbled on Monday after President Donald Trump asked the Organization of Petroleum Exporting Countries to "take it easy" on its supply cuts with prices steadily gaining since the start of the year.
The United States Oil Fund (USO) , which tracks West Texas Intermediate crude oil futures, declined 3.1% and the United States Brent Oil Fund (BNO) , which tracks Brent crude oil futures, decreased 3.4% on Monday.
Meanwhile, WTI crude oil futures were down 3.3% to $55.4 per barrel and Brent crude was 3.8% lower to $64.6 per barrel on Monday.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!” President Trump said in an early morning tweet Monday.
Trump's urging comes after a fresh round of price-bolstering production cuts out of the oil cartel and other oil-producers, CNBC reports. The producers will meet in mid-April to review its ongoing production plans.
“When you read into the implication of [Trump’s tweet], it’s twofold. First you have to believe the Saudis are going to take note. They have in the past,” John Kilduff, founding partner at energy hedge fund Again Capital, told CNBC. “And then you have to believe that another round of waivers on the Iran sanctions has to be on the table, and I think that’s the secondary implication from that tweet.”
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OPEC and its allies have agreed to cut 1.2 million barrels of crude per day from the market in a bid to stabilize prices after Brent crude hit a low of close to $50 per barrel in late December, plunging over 40% in the last quarter of 2018.
The so-called OPEC+ alliance started off curbing its output in 2017 to end the prolonged low prices in crude but lifted caps last June as oil prices touched a three-and-a-half year high ahead of Trump's sanctions o Iran.
For more information on the energy sector, visit our energy category.
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