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Rising Oil Prices Support Oil Equities – Russian Oil Production Slowdown and Weak OPEC Oil Production Could Mean Further Boost

The recent rise in oil prices is also due to the EU Commission’s proposal to impose an embargo on Russian crude oil and refined products, following the example of the US. It also wants to give EU member states that are heavily dependent on Russian oil, such as Hungary, Slovakia, and the Czech Republic, more time to implement the supply freeze.

Brent crude oil futures rose again on Friday by 2.03% to $ 113.15 per barrel. This represents a weekly increase of 5.18%.

WTI futures rose 2.17% to $110.61 per barrel on Friday. For the week, this means an increase of 5.17%.

The rise in crude oil prices has also boosted oil stocks. Shares of Chevron (NYSE: CVX) rose 2.66% on Friday to $170.69, up 8.95% this week alone and 45.45% YTD.

Exxon Mobile (NYSE: XOM) shares rose 1.53% on Friday. This week, the stock is up 7.55% and YTD up 49.84%.

Pioneer (NYSE: PXD) shares rose 5.34% on Friday. This week alone, the stock is up 16.22% and YTD up 48.55%.

ConocoPhillips (NYSE: COP) shares rose 4.7% on Friday. This week, that’s an increase of 12.74% and a YTD of 49.20%.

Oil prices may soon get another boost after the International Energy Agency reported that Russian oil production is estimated to have fallen by 700k barrels per day in April. However, these are only initial reports, as it is estimated that oil production fell by 1.5 million barrels per day this month. In addition, OPEC is said to have produced well below its promised oil production quotas. Only 40k barrels per day more were produced in March, far below the 400k barrels per day announced.

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