Oil soars on OPEC and Alberta output cuts

OPEC and Alberta both signal cuts for oil production in 2019, pushing the price of crude and oil stocks higher, though experts predict uncertainty ahead

Ruth Saldanha 4 December, 2018 | 7:00PM

This past weekend saw some much-needed good news for the oil sector after a slump in prices, with Russia and Saudi Arabia signalling production curbs, Alberta announcing production cuts, and Qatar announcing plans to exit oil cartel OPEC next year.

As a result, the price of crude oil rallied, gaining nearly 4% on Monday.

The rout in crude prices since October has predominately been supply-driven so these developments come as a welcome reprieve for crude markets, which are, not surprisingly, seeing strong rallies in across the world in response”, said Candice Bangsund, vice president and portfolio manager at Fiera Capital, pointing out that the mood in the marketplace has improved drastically over the weekend.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BP PLC202.79 GBX-1.53
Canadian Natural Resources Ltd17.42 USD0.00
Canadian Natural Resources Ltd22.88 CAD-0.39
Cenovus Energy Inc4.84 CAD0.41
Devon Energy Corp8.81 USD-1.78
Exxon Mobil Corp33.29 USD-1.22
Royal Dutch Shell PLC B917.50 GBX-1.60

About Author

Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca

 

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