European energy stocks surge after surprise OPEC+ output cut

European energy stocks surge after surprise OPEC+ output cut
© Reuters.

By Scott Kanowsky — 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:), BP PLC (LON:), and France’s TotalEnergies SE (EPA:) all gained more than 3% in early trading, while the  index – a tracker of stocks in the sector – climbed nearly 4%.

Oil prices, meanwhile, surged, with futures rising 5.43% to $79.78 a barrel and the 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.

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  • Meggie Predovic , January 12, 2023 @ 12:28 pm

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