OPEC Sticks to Its Plan, Which Is Excellent News for These Oil Stocks

Earlier this week, OPEC ended months of speculation about the future of its oil market stabilization plan. The current agreement where OPEC and a 10-nation non-member coalition led by Russia are holding back 1.8 million barrels of crude per day was set to expire next March. However, the participants agreed to extend that deal through the end of next year in hopes that it will continue draining off the market's excess supply and prop up oil prices.

That agreement is great news for shale drillers in the U.S. because it suggests oil prices have much more upside than downside. Because of that, low-cost drillers like EOG Resources (NYSE: EOG), Encana (NYSE: ECA), and Marathon Oil (NYSE: MRO) should thrive in the year ahead.

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Source: Fool.com