Crude oil prices have been rallying as investors anticipated oil producers will take action to rein in the ongoing supply glut after Saudi Energy Minister Khalid al-Falih said the kingdom would work with other major producers to stabilize markets, reports Libby George for Reuters.
Further supporting prices, over 700,000 barrels per day of oil were missing in Nigeria due to militant attacks and pipeline problems. Venezuela is also on track for its steepest annual oil output decline in 14 years as the government tackles with economic and political problems after years of under investment and mismanagement.
Oil majors have tightened their belts, reducing costs by laying off thousands of workers and halted many new projects. Large integrated oil companies are expected to hold up better than drilling stocks as these giants have both upstream exploration and production, along with downstream refining operations.
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