Warren Buffett Is Getting a Helping Hand From a Surprising Source
Warren Buffett has been making a bold bet on oil prices over the past year. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has been buying shares of oil giants Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY) hand over fist to capitalize on the rise in crude prices.
While oil prices have cooled off on fears that we're about to enter a global recession, that slump has reversed recently thanks to OPEC. The group of oil-producing nations has surprisingly agreed to cut its production by a whopping 2 million barrels per day, giving crude prices a lift. That should provide a boost to Buffett's oil stocks in the future.
Oil prices have been on a wild ride this year. The price for Brent crude, the global benchmark variety, started 2022 below $80 a barrel. It soon spiked to more than $120 a barrel following Russia's invasion of Ukraine. It remained in the triple digits well into the summer before cooling off on concerns that the global economy was starting to slow. Brent recently bottomed out in the low $80s.
Source Fool.com
