Oil stocks are up in the green, celebrating the surprise oil production cuts announced by OPEC+, leading to a sharp uptick in oil prices.
At a time when it was widely expected that OPEC would maintain a status quo or increase production to maintain oil prices at the current levels,, OPEC + members announced yesterday that they were cutting output by more than one million barrels a day.
Saudi Arabia is reducing output by 500,000 barrels per day and Iraq by 211,000. The UAE, Kuwait, Algeria and Oman are also making cuts.
This move is made to keep oil prices over $80/barrel in the coming months as they want to limit any adverse impact on their oil income as demand, given the growing drum beats of recession could impact demand.
ONGC, Oil India, HOEC, Manali Petro are all up in the green, leading the pack of gainers in this current lackustre market.