These Oil Stocks Just Got a Big Boost and Could Rocket From Here
OPEC has made it clear that it wants to drive oil prices higher. It has been curtailing its output since July, when it revealed a 1-million-barrel per day (BPD) cut. The group of oil-producing nations recently agreed to extend those cuts through the end of the year.
That catalyst should drive oil prices even higher, providing a boost for oil stocks. Their shares could rocket as they return more of their oil-fueled cash flows to shareholders.
OPEC's decision to extend its production cuts likely comes as no surprise to Pioneer Natural Resources (NYSE: PXD) CEO Scott Sheffield. On the company's second-quarter conference call, Sheffield stated his belief that Saudi Arabia's oil minister wanted to stabilize the global oil price at $90 or higher. Because of that, Sheffield said he expected "Saudi to extend their 1 million-barrel-a-day cut they initiated July 1 toward the end of '23." That's exactly what happened.
Source Fool.com
