Oil production increases by OPEC+, backed by Shell, Chevron, and others, yet oil prices continue to rise - explaining the current market situation
The oil market is showing signs of potential gains, even with the OPEC+ alliance deciding to gradually increase production. This comes as the European Union plans to reduce its dependence on Russian energy, aiming to limit financial support for Russia's war in Ukraine.
In the oil sector, AKTIONAΓR recommends Shell, Chevron, and ExxonMobil for investors. Each barrel, equivalent to 159 liters, could potentially gain on Monday due to the current market conditions.
Invested shareholders are advised to secure their positions. For Shell, a stop at 24.00 euros is suggested, while for Chevron and ExxonMobil, the recommended stops are 115.00 euros and 85.00 euros, respectively. It's worth noting that these companies offer attractive dividend yields of 4.6%, 4.2%, and 3.5% for Shell, Chevron, and ExxonMobil, respectively.
The OPEC+ core group has been gradually increasing production to phase out an earlier cut of 2.2 million barrels per day. This decision, however, is partially reversing another previous restriction of 1.65 million barrels per day. The increase in production, scheduled to start from October, is slower, with only 137,000 barrels per day being approved compared to 547,000 barrels per day in September.
The European Union is also planning new sanctions against Russian energy companies. The EU aims to ban imports of Russian gas entirely by 2028, with long-term contracts prohibited starting January 1, 2028, and short-term contracts banned from June 17, 2026. This includes Russian liquefied natural gas (LNG) imports, which are currently significant, and aims to reduce dependence on Russian energy.
Prices are supported by speculation about further sanctions against Russia. However, it's important to note that the speculation about potential additional sanctions against Russia's oil sector is not a new fact, as it was previously mentioned.
The blue chips remain particularly attractive for dividend hunters in the oil sector, making them a viable option for investors seeking steady returns. It's crucial for investors to keep a close eye on market developments and adjust their strategies accordingly.
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