Related: Hurricane Harvey’s Lingering Effects on Gasoline ETF
Current OPEC compliance with production cut plans remains above their historical average, and it usually takes between two to three quarters for inventories to normalize after the cuts. The challenge for energy equities is that some oil market observers see more declines coming for crude. Oil traders are concerned over how fast U.S. shale oil producers will increase production to capture the rising prices.
“Some analysts consider the international oil majors to still be attractive, while others believe that energy stocks may not be worth buying because in the lower-for-longer oil prices, growth may be underwhelming,” notes OilPrice.com.
For more information on the oil market, visit our oil category.