(Bloomberg) — Oil edged lower as traders weigh surging US production against disruption in the OPEC cartel and the threat of ship attacks in the Red Sea.
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West Texas Intermediate slipped to settle below $74 a barrel after a three-day advance, with sentiment worsening after Angola announced its exit from the Organization of Petroleum Exporting Countries.
Angola’s departure will shrink OPEC’s membership to 12 nations. The government in Luanda had rejected a reduced output limit that leaders of the group had imposed on it in a reflection of the country’s dwindling production capacity. Traders continue to see signs that supply remains ample as US crude output hit a record of 13.3 million barrels a day last week, according to government data.
Meanwhile, the Iran-backed Houthi militant group warned it would retaliate if the US carries out attacks on its bases in Yemen.
Crude rallied earlier this week as the…
