Tuesday saw a strong rally in energy stocks following news that OPEC+ agreed to cut oil production by 2 million barrels per day. The move is the biggest in over two years and could drive oil prices higher in the days ahead. Russia is seen as one of the biggest beneficiaries of this decision.
OPEC+, or the Organization of the Petroleum Exporting Countries, is an alliance of oil-producing countries that controls more than half of the world’s oil production. The production cut clearly indicates the alliance’s intention to keep oil prices high for the foreseeable future.
Disappointed by this decision, the American president ordered the release of 10 million barrels of oil from the strategic petroleum reserve, as reported by the WSJ.
Oil prices crossed the $120 mark earlier this year, but are currently trading at $88. Let’s take a look at Wall Street analyst ratings for three major energy companies that could benefit from higher oil prices in the coming days.
Occidental Petroleum (NYSE:OXY)
Warren Buffet’s favorite oil stock, Occidental Petroleum (NYSE: OXY) gained 2.4% yesterday on the news. Based in Texas, USA, Occidental Petroleum Corp. is engaged in the exploration and production of petroleum and natural gas.
Is OXY Stock a good buy?
Despite the fact that Occidental Petroleum’s stock has more than doubled over the past year, the Street continues to be bullish on OXY with some caution. Overall, the stock commands a moderate buy consensus rating based on five buys, seven holds and one sell. Occidental Petroleum’s average price target of $76.67 implies upside potential of 13.18% from current levels.
Notably, OXY stock has a top smart score of a “Perfect 10” on TipRanks. Additionally, OXY stock is getting a very positive signal from hedge fund managers, who added 18.8 million shares in the last quarter.
In addition to that, insiders as well as retail investors are bullish on the stock. TipRanks’ Stock Investors tool shows that investors currently hold a very positive stance on OXY, with 3.6% of investors on TipRanks increasing their exposure to the stock over the past 30 days.
Exxon Mobil (NYSE: XOM)
Also based in Texas, USA, Exxon Mobil Corp. (NYSE: XOM) is engaged in the exploration, development and distribution of oil, gas and petroleum products. Yesterday, XOM shares gained 4% on news from OPEC+ as well as the upbeat third quarter update provided by the company.
Exxon said third-quarter earnings will benefit from higher natural gas prices, offsetting the impact of lower oil and liquids prices as well as lower refining and chemical margins from the second. trimester.
Is XOM buying or selling?
According to TipRanks, analysts are cautiously bullish on the stock and have a moderate buy consensus rating, based on seven buys and three holds. Exxon Mobil’s average stock price forecast of $109.05 implies an upside potential of 10.02%.
XOM stock has a score of 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Schlumberger (NYSE: SLB)
Schlumberg (NYSE: SLB) shares gained 6.3% yesterday on the double news of the OPEC+ production cut as well as a new partnership agreement signed with Gradiant, a global water solutions provider, on the sustainable production of battery-grade lithium compounds.
Based in Texas, USA, Schlumberger is an oilfield services company that provides technologies for reservoir characterization, drilling, production and processing to the oil and gas industry.
Will Schlumberger stock go up?
According to TipRanks, SLB stock has an average price prediction of $50.25, implying an upside potential of 20.88%. The highest price target of $61 implies an upside potential of 46.74% while the lowest price target of $43 has an upside potential of 3.4%.
The Wall Street community is clearly bullish on the stock. Overall, the stock commands a strong buy consensus rating based on 12 unanimous buys. Schlumberger’s average price target of $50.25 implies upside potential of 20.88% from current levels.
All of the aforementioned stocks with exposure to oil and gas should benefit from the continued demand for energy and the expected rise in prices in the time ahead.
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