WTI crude oil closed 0.78% higher to $88.45 in today’s session, building up on gains after the OPEC+ decision to cut output by two million barrels a day.
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Further, crude stockpiles declined by 1.4 million barrels in the U.S., marking the second week of decline. Despite the OPEC+ decision, U.S. oil producers may not ramp up production immediately given their focus on maximizing shareholder returns.
Moreover, the U.S. is looking to subdue rising oil prices amid Russia’s Ukraine invasion and the Department of Energy will release 10 million barrels from the strategic reserve next month.
The U.S. is also easing off sanctions on Venezuela, a move that will allow Chevron to bring Venezuelan oil onto the market. Shell’s Q3 numbers on October 27 are expected to take a hit owing to margin pressures. This trend was also seen in Exxon’s recent Q3 update.
U.S. natural gas also closed higher, as it gained 0.62% to $6.972.
Here are some stocks that could be affected by this news:
- Energy Select Sector SPDR Fund (XLE)
- United States Oil Fund LP (USO)
- ProShares Ultra Bloomberg Crude Oil (UCO)
- Exxon Mobil (XOM)
- Chevron (CVX)
- Occidental Petroleum (OXY)
- United States Natural Gas Fund LP (UNG)
- Cheniere Energy (LNG)
- Shell (SHEL)
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