Market News

Oil Gains as OPEC+ Agrees on Biggest Production Cut Since April 2020

After yesterday’s rally, WTI crude oil closed 1.43% higher, at $87.76, after OPEC+ agreed to a production cut of about 2 million barrels a day. This is a figure that may sound daunting but may not have a substantial impact in an already-weak macro environment.

A price cap on Russian oil from the E.U. could lend strength to oil as well. Further, U.S. stocks of oil declined by almost 1.8 million barrels in the week ended September 30.  

In the meantime, Exxon expects its Q3 numbers on October 28 to see an impact from lower liquids prices and margin constraints in energy products.

U.S. natural gas also closed higher by 1.46% to $6.93 but is still down significantly over the past month.

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)

Disclosure

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