OPEC has made it clear that it wants to drive oil prices higher. It has been curtailing its output since July, when it revealed a 1-million-barrel per day (BPD) cut. The group of oil-producing nations recently agreed to extend those cuts through the end of the year. 

That catalyst should drive oil prices even higher, providing a boost for oil stocks. Their shares could rocket as they return more of their oil-fueled cash flows to shareholders.

OPEC's decision to extend its production cuts likely comes as no surprise to Pioneer Natural Resources (NYSE: PXD) CEO Scott Sheffield. On the company's second-quarter conference call, Sheffield stated his belief that Saudi Arabia's oil minister wanted to stabilize the global oil price at $90 or higher. Because of that, Sheffield said he expected "Saudi to extend their 1 million-barrel-a-day cut they initiated July 1 toward the end of '23." That's exactly what happened. 

Continue reading

Source Fool.com