Warren Buffett has been making a huge wager on oil prices. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), has purchased millions of shares of oil giants Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY). He now owns sizable positions in both companies, positioning his portfolio to capitalize on higher oil prices.

That thesis recently got a potential boost from OPEC. The group of oil-producing nations led by Saudi Arabia recently agreed to cut its production by 100,000 barrels per day (BPD). They're reducing output to boost prices, which have cooled off because of concerns that the global economy is slowing. Higher prices could give oil stocks -- including those owned by Buffett -- the fuel to head higher.  

OPEC has long held significant sway over the oil market. The 13-member group of oil-producing nations sets production quotas to keep a firm grasp on oil supplies. The group has also started coordinating with several non-member countries, including Russia and known as OPEC+, to have even more sway over oil prices. 

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Source Fool.com