3 Oil Stocks to Buy to Cash In on Saudi Arabia's Bid to Boost Crude Prices
Saudi Arabia is leading a coordinated effort to remove over 1 million barrels per day (BPD) from global oil supplies. The unexpected move is fueling a rally in crude prices, pushing them back above $80 a barrel. The action is reportedly in response to the U.S. government's decision not to begin refilling its Strategic Petroleum Reserve this year.
The move could cause oil prices to head even higher in the coming months as demand rebounds. That would boost the oil industry's cash flows. The prospect for even higher prices makes Devon Energy (NYSE: DVN), Diamondback Energy (NASDAQ: FANG), and Pioneer Natural Resources (NYSE: PXD) look like great oil stocks to buy since they plan to return the bulk of their oil-fueled cash flows to shareholders this year.
Saudi Arabia unveiled this week that it will voluntarily cut its production by 500,000 BPD from May through the year's end. Meanwhile, Russia is joining it by extending its 500,000 BPD cut that began last month through the end of this year. These moves will remove significant supply from the market right as demand is on track to accelerate.
Source Fool.com
