- “We have an agreement” for a “nominal” production increase of 1M bbl/day, Saudi Energy Minister Khalid Al-Falih says, sending energy companies to the top of today's stock market leaderboard.
- In reality, the deal will add ~700K bbl/day of oil to the market in H2 of the year because several members are unable to increase their production, Nigeria Oil Minister Kachikwu says.
- But the deal gives tacit approval to Saudi Arabia to produce more than currently allowed by OPEC, as the final communique from the group avoids setting individual country targets.
- Crude oil futures remain sharply higher: WTI +3.8% at $68.02/bbl, Brent +2.3% at $74.72/bbl.
- Oil and gas companies are broadly higher: XOM +2.3%, CVX +2.3%, COP +4.3%, BP +3.9%, RDS.B +4.1%, SLB +3.8%, HAL +4.5%, BHGE +3.6%, DVN +5.2%, APC +6.8%, APA +1.7%, HES +4.6%, EOG +3.1%, PXD +3.9%, CHK +3.1%, NOV +3.1%, WFT +5.9%.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
- Now read: Chesapeake Energy: Here Comes The Cash
Original article