Venezuela's OPEC Exit Could Unleash a Global Oil Glut

Hedge funds have turned most overweight on energy stocks relative to global stocks since June 2024, marking a sharp reversal from their most underweighted position since 2021.

The United States Oil Fund (USO), which tracks the daily price movements of West Texas Intermediate (WTI) light, sweet crude oil, has soared nearly 88% so far in 2026. The ProShares Ultra Bloomberg Crude Oil (UCO) has gained more than 120%, and the United States Brent Oil Fund LP (BNO) is up over 82% in the same time.

Venezuela is considering leaving the Organization of the Petroleum Exporting Countries (OPEC), which could allow it to pursue higher production without future restrictions. This comes after the U.S. intervention in Caracas earlier this year, resulting in the ouster and capture of former Venezuelan President Nicolás Maduro.