5 Oil Stocks To Buy As Output Cut Hopes Rise

Oil prices surged to a three-week high after expectations heightened that OPEC is close to reaching an output cut deal. Speculation is rife that members of the producer bloc are close to an agreement after Nigerian delegate Ibrahim Waya said “everyone is on board.” Waya was speaking on the sidelines of a meeting of OPEC members being held in Vienna. 

Market watchers and experts believe that oil prices will start to trend even higher once such an agreement is concluded. This is why picking oil stocks looks like a smart option at this point.

OPEC Members Discuss Outstanding Hurdles

OPEC members have assembled in Vienna for a two-day meeting to discuss output quotas. These discussions are in preparation for the OPEC ministerial meeting to be held on Nov 30 between member nations as well as the non OPEC oil major Russia. Among the issues which remain unresolved at the moment is Iraq’s demand to be excluded from an output cap agreement.

Other members which have made similar demands include Nigeria, Libya and Iran. All of these countries are, in fact, eager to raise output after bearing the brunt of sanctions or internal conflict. Additionally, Iran and Saudi Arabia have long-standing geopolitical differences that must be set aside in order to come to an agreement.

However, recent comments from top officials of Iran and Iraq have been encouraging in nature. Representatives of member countries have said that progress has been made on outstanding issues. Additionally, members seem to be ready to provide Iran with sufficient latitude on its production volumes.

Goldman, Putin Add to Optimism

On Sunday, Russia’s president Vladimir Putin said that there was a “high probability” that a deal on controlling crude output would be reached at the meeting to be held on Nov 30. Putin said that Russia would act in consonance with the expectations of OPEC members. Freezing crude output “is not an issue” for Russia, he said. Putin’s comments gave an added boost to crude prices on Monday.

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