Crude oil prices rose again Wednesday in response to the decision by OPEC+ to cut oil production by an amount even larger than many had speculated. The cut by the oil-exporting countries was seen as a move to support sagging oil prices, but it could also deal another blow to a struggling global economy.
The decision means OPEC+ will slash production by 2 million barrels a day beginning in November. It came as OPEC+ ministers held their first face-to-face meeting at the Vienna headquarters of the organization since the start of the COVID-19 pandemic.
It might also send pump prices back up for U.S. drivers, a move that could be seen for Democrats in control of the White House and Congress just ahead of some critical national elections.
Saudi Energy Minister Abdulaziz bin Salman said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.”
“We are here to stay as a moderating force, to bring about stability,” he told reporters.
At the White House, President Biden said he was “disappointed” and concerned about the move.
What happened to crude prices?
In the U.S., West Texas Intermediate crude for November delivery went up $1.24 or nearly 2% to settle at $87.76 a barrel in trading on the New York Mercantile Exchange.
Global benchmark Brent crude for December delivery managed at $1.57 increase or more than 2% to $93.37 a barrel on ICE Futures Europe.
November natural gas rose about 2% or 9 cents to $6.93 per 1,000 cubic feet.
Another strong day was recorded by some Oklahoma energy stocks in response to a third straight day of rising crude oil prices.
Mammoth Energy had a nearly 10% gain while SandRidge Energy experienced a 7% gain for the day.
Apache (APA) up 1.36 at 40.52 – change 3.47%
Cheniere (LNG) up 1.02 at 171.44 – change 0.59%
Chevron (CVX) up 0.90 at 158.53 – change 0.57%
ConocoPhillips (COP) up 0.31 at 115.93 – change 0.26%
Diamondback Energy (FANG) up 3.07 at 139.37 – change 2.25%
Energy Transfer LP (ET) up 0.12 at 11.85 – change 1.02%
Enterprise Products Partners (EPD) up 0.07 at 24.86 – change 0.28%
EOG Resources (EOG) up 0.91 at 126.08 – change 0.72%
ExxonMobil (XOM) up 3.85 at 99.12 – change 4.04%
Kinder Morgan (KMI) up 0.03 at 17.70 – change 0.16%
Marathon Oil Corp. (MRO) up 0.69 at 27.19 – change 2.60%
National Oilwell Varco (NOV) up 0.88 at 18.44 – change 5.01%
Occidental Petroleum (OXY) up 1.57 at 67.73 – change 2.37%
Phillips 66 (PSX) up 2.25 at 92.61 – change 2.49%
Pioneer Natural Resources (PXD) up 7.77 at 251.18 – change 3.19%
Tellurian Inc. (TELL) down 0.01 at 2.73 – change 0.37%
Valero (VLO) up 0.51 at 118.09 – change 0.43%
CLOSING TOP UTILITY STOCKS
American Electric Power (AEP) down 2.96 at 87.70 – change 3.27%
CenterPoint (CNP) down 0.62 at 28.81 – change 2.11%
Entergy (ETR) down 1.24 at 104.91 – change 1.17%