FANG - OPEC's Extension Could Fuel More Gains for These 5 Oil Stocks
OPEC and its non-member partners have agreed to extend the initial rate of their historic production reduction agreement through the end of next month. The group of oil-producing nations will also make up for its shortfall in May as the non-compliant members will deliver deeper cuts over the next three months. This agreement will significantly reduce oil supplies over the near term, giving the global economy more time to burn off its excess inventory.
Despite some non-compliance issues, OPEC's initial agreement accomplished its mission as oil prices screamed higher in May. WTI, the main U.S. oil benchmark, zoomed 88% last month, with that rally continuing in June, pushing it up near $40 a barrel. WTI could keep rallying because of the extended support, which would likely fuel more gains for U.S. drillers. Here are five oil stocks that stand out as potentially big beneficiaries of OPEC's extension.
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