Occidental Petroleum Corp (NYSE:OXY), Exxon Mobil Corp (NYSE:XOM) and Marathon Oil Corp (NYSE:MRO) shares are moving higher Monday morning after OPEC+ made a surprise announcement that it plans to slash output.
What To Know: A group of several countries that export oil, known as OPEC+, announced plans to cut oil production by approximately 1.16 barrels per day on Sunday. The move represents about 1% of world supplies and is expected to cause an immediate rise in oil prices.
According to a New York Times report, Russia appears to be struggling to keep production levels elevated in the wake of its invasion of Ukraine as several service companies have pulled back or halted operations. Saudi production has also been below expected levels in recent months.
The news of the cuts comes just days after OPEC+ leaders said they did not expect to change output levels.
Front month WTI Crude futures were trading up more than 6% at $80.22 and Brent Crude futures, the international benchmark, were up 5.42% at $83.40 at the time of writing.
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Price Action: At time of publication, Occidental was up 5.66% at $65.97, Exxon Mobil was up 4.03% at $114.08 and Marathon Oil was up 7.26% at $25.70, according to Benzinga Pro.
Photo: Kristina KasputienÄ— from Pixabay.
