ESV - Offshore Drilling Stocks After OPEC/Non-OPEC Deal
The outcome of the OPEC/non-OPEC negotiations was crucial for all offshore drilling stocks - in case of a failure, massive sell-off would have happened. Obviously, the negotiators realized the importance of their decision for their countries and cash flows and finally go to a deal, although not without the usual drama regarding the size of cuts and the exemptions from the deal to countries under particular distress.
Now, the market will have to live with the results of the deal - a cut of 1.2 million bpd (800,000 bpd from OPEC and 400,000 from non-OPEC).