Oil price news: Oil slides as Red Sea risks weighed against record U.S. output

Oil fell after a three-day advance as traders weigh surging U.S. production against the ongoing threat of Houthi attacks on ships in the Red Sea.

Global benchmark Brent slipped 1.8 per cent to trade below US$79 a barrel, with sentiment worsening after Angola announced its exit from the Organization of Petroleum Exporting Countries. U.S. crude output hit a record of 13.3 million barrels a day last week, according to government data. Meanwhile, the Iran-backed militant group warned it would retaliate if the U.S. carries out attacks on its bases in Yemen.

Angola’s departure will shrink OPEC membership to 12 nations. The government in Luanda had rejected a reduced output limit imposed by the leaders of the cartel to reflect the country’s dwindling oil output capacity. State-owned Jornal de Angola reported the decision, citing Mineral Resources Minister Diamantino Azevedo.

Crude rallied earlier this week as the escalation of the Red Sea attacks prompted shippers to divert vessels away from the major energy chokepoint. It’s still set for the first annual decline since 2020, as booming production from the U.S., Guyana and Brazil offsets output cuts by Saudi Arabia and the OPEC+ cartel.