Shares of oil companies such as Chevron rose on news of Saudi Arabia’s production cuts

(New York = Yonhap Infomax) Reporter Soo-yeon Bae = Chevron (NYS:CVX), Exxon Mobil (NYS:XOM), Ovintiv (NYS:OVV), ConocoPhillips (NYS:COP), Cosmos Energy (NYS:KOS), etc. Stock prices of oil-related companies show a strong trend on the New York Stock Exchange on the 5th (local time). Saudi Arabia, the world’s biggest oil producer, said it would cut production by an average of 1 million barrels per day (bpd).

<7월 인도 서부텍사스산원유(WTI) 선물 가격 일봉 차트:인포맥스 제공>
According to investment media outlet Barron’s, OPEC and Russia and other major non-OPEC oil-producing countries ‘OPEC+ (OPEC+) have extended production cuts until next year (bpd), but announced that they would reduce production crude oil 1 million bpd from July to 9 million bpd. This is the biggest production cut in recent years, apart from OPEC+’s decision to extend production cuts until next year. Prior to this, Saudi Arabia had already announced its intention to voluntarily cut production by 500,000 bpd last month.

International oil prices are on the rise. According to Yonhap Infomax (screen number 7229), on the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) in India in July is trading at $73.60 per barrel, up $1.86 (2.58%) from the battlefield.

Analysts at Jefferies diagnosed that “in the beginning, international oil prices and stock prices (of related companies) are likely to react positively.”

“However, historically, stock prices have been concerned about the impact on demand and when crude oil will come back,” they stressed.

“Certainly (an increase in oil prices) is positive in terms of profits, but demand is likely to be the main indicator of stock prices going forward,” they added.

Chevron (NYS:CVX) was up 1.3% at one point, ExxonMobil (NYS:XOM) 1.4%, Ovintiv (NYS:OVV) 3.4%, Cosmos Energy (NYS:KOS) 2.3%, ConocoPhillips (NYS:COP) 1.9 % ■ The share prices of related companies as % are on an upward trend in the New York Stock Exchange on the same day.

This article was served at 22:50 on the Infomax financial information terminal.

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