OPEC cuts crude production

Power/Fuel
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OPEC announced costs in oil production that will likely result in US average prices for regular gasoline over $4/ gallon this coming summer.

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Predictably, the prices of the major oil stocks are surging today, which is further evidence that oil companies don’t just “pass along their increased supply costs”.
Good times ahead for the oil companies, apparently.

Marathon Oil surged (MRO) 8.9%, ConocoPhillips (COP) jumped 7.5%, Halliburton (HAL) climbed 7.3%, Exxon Mobil (XOM) rose 5.5%, Chevron (CVX) rose 3.9%, Occidental Petroleum (OXY) gained 4.7%, U.S.-listed shares of BP (BP) were up 4.7%, and Shell (SHEL) gained 4.6%

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and US oil producers wont increase production because they dont want too?

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US production has been going up, about 1 million barrels per day per year since the covid collapse. Won’t be able to add another million barrels a day in short order, it’ll take time.

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