Market Movers On the rise
TSX-listed energy stocks enjoyed gains on Monday after surprise cuts to OPEC+ group’s output targets, which analysts and traders think could push oil prices towards US$100 a barrel and set the scene for another clash with the West grappling with higher interest rates.
The decision signals unity within OPEC+ despite Washington’s pressure on its Gulf allies to weaken their ties with Moscow, while also undermining the West’s efforts to limit Russia’s oil income.
Oil prices jumped over 6 per cent on Monday after the Organization of the Petroleum Exporting Countries and their allies including Russia announced further production target cuts of about 1.16 million barrels per day (bpd) from May through the rest of the year.
The pledges will bring the total volume of cuts by the group known as OPEC+ since November to 3.66 million bpd according to Reuters calculations, equal to 3.7 per cent of global demand.
OPEC+ had been expected to hold output steady this year, having already cut by 2 million bpd in November 2022.
Large caps Canadian Natural Resources Ltd. , Suncor Energy Inc. and Cenovus Energy Inc. were among those seeing gains.