Oil giants slide as OPEC+ eyes another output hike
Oil stocks sank Wednesday after reports that OPEC+ is weighing another 1.65 million barrels per day in output hikes, beginning to undo prior rounds of cuts a year earlier than previously planned, and could even agree on further production increases at its meeting this weekend.
Oil names including ConocoPhillips, Phillips 66, APA Corporation, Diamondback Energy, Devon Energy, Halliburton, and EOG Resources were all in the red as investors digested the prospect of a supply boost.
The pullback comes as traders consider the group’s next move ahead of its fall meeting, with speculation growing that Saudi Arabia and Russia could push for higher output to maintain global market share.
Despite steady prices earlier this summer, a ramp in supply would likely pressure US producers, who are already grappling with signs of softening demand and rising costs.
