Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

European energy stocks surge after surprise OPEC+ output cut

Published 03/04/2023, 08:44
© Reuters.
BP
-
TTEF
-
LCO
-
CL
-
SHEL
-
SXEP
-
ENRY
-

By Scott Kanowsky 

Investing.com -- Shares in European oil companies jumped on Monday after OPEC+ nations unveiled a surprise output reduction over the weekend to offset worries over weakening demand.

Energy giants like Shell PLC (LON:SHEL), BP PLC (LON:BP), and France's TotalEnergies SE (EPA:TTEF) all gained more than 3% in early trading, while the STOXX Europe 600 Oil & Gas index - a tracker of stocks in the sector - climbed nearly 4%.

Oil prices, meanwhile, surged, with U.S. crude futures rising 5.43% to $79.78 a barrel and the Brent contract moving higher by 5.50% to $84.28 as of 03:22 ET.

The Organization of Petroleum Exporting Countries and its allies, known collectively as OPEC+, unexpectedly announced on Sunday that it will slash production by over 1 million barrels per day through to the end of this year.

This move came ahead of a virtual meeting of the group’s monitoring committee later today, which had been widely expected to confirm the production levels agreed upon in November.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.