Oil stocks were mixed Monday after Saudi Arabia pledged to cut oil production by another one million barrels a day in July, as the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to extend their current oil-production target through 2024.
Chevron
stock (CVX) is up 0.1%,
Exxon Mobil
stock (XOM) is down 0.2%, and
ConocoPhillips
stock (COP) is down 1%.
Brent crude, the international benchmark, is up 1.1% to $76.93 a barrel, while West Texas Intermediate, the U.S. standard, gained 1% to $72.44.
In a Monday note, Jefferies analysts posed the question of whether OPEC+ cutting barrels is “a good or bad indicator” for oil markets and oil stocks. The answer is mixed.
“Initially oil markets and equities are likely to react positively, especially given the generally negative positioning today,” Jeffries analysts wrote.
“Subsequently, though, the equities have historically then worried about (a) demand implications and (b) when that oil comes back on,” they added. “While definitely a positive at the margin, demand is likely still the key leading indicator for the equities going forward.”
Write to Emily Dattilo at [email protected]
Read the full article here
