Energy stocks are 16 percent up this year, but they may not continue rising after the OPEC decision to cut oil production.
The announcement came after roughly three months of rising oil prices and speculation. The proposed cut to 32.5 and 33 million barrels a day, from 33.2 million barrels a day in August, confirmed that no one wants to continue pumping oil to a saturated market.
“We expected that the group would come together and make face-saving statements,” wrote Michael Cohen, Head of Energy Commodities Research at Barclays. “Certain countries in OPEC are at or near their peak already and would not likely be willing to crush the market by supplying more than is demanded.”
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