PXD - These Oil Stocks Just Got a Big Boost and Could Rocket From Here
2023-09-06 10:30:55 ET
OPEC has made it clear that it wants to drive oil prices higher. It has been curtailing its output since July, when it revealed a 1-million-barrel per day (BPD) cut. The group of oil-producing nations recently agreed to extend those cuts through the end of the year.
That catalyst should drive oil prices even higher, providing a boost for oil stocks . Their shares could rocket as they return more of their oil-fueled cash flows to shareholders.
OPEC's decision to extend its production cuts likely comes as no surprise to Pioneer Natural Resources (NYSE: PXD) CEO Scott Sheffield. On the company's second-quarter conference call, Sheffield stated his belief that Saudi Arabia's oil minister wanted to stabilize the global oil price at $90 or higher. Because of that, Sheffield said he expected "Saudi to extend their 1 million-barrel-a-day cut they initiated July 1 toward the end of '23." That's exactly what happened.
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These Oil Stocks Just Got a Big Boost and Could Rocket From Here