Oil services stocks and oil ETFs were leading the pack Friday after the Organization of Petroleum Exporting Countries revealed plans to cut production, progress in the U.S.-China trade negotiations and on Schlumberger’s fourth quarter revenue beat.
Among the best performing non-leveraged ETFs of Friday, the VanEck Vectors Oil Services ETF (NYSEArca: OIH) rose 3.7%, SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) increased 2.2% and iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) advanced 3.2%, breaking above their short-term resistance at the 50-day simple moving average.
Meanwhile, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude oil futures, gained 2.5% and the United States Brent Oil Fund (NYSEArca: BNO), which tracks Brent crude oil futures, was up 2.6%, also moving above their 50-day trend lines.
OPEC Oil Production Cuts
OPEC issued a list of oil production cuts by its members and other major producers for the next six months starting January 1 to bolster confidence in the global crude oil markets as the cartel and its allies move to cut supply to combat the global glut, Reuters reports.
“It’s going to send a signal to the market that they’re serious,” Phil Flynn, an analyst at Price Futures Group, told Reuters. “I think they also want to point out that they’re probably going to be overcompliant with these numbers, especially from Saudi Arabia.”
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