Oil prices have firmed in 2017, but they have not risen as much as some analysts had forecast. OPEC nations promised production cuts, which have helped firm prices, but supply has not fallen enough to really drive oil prices higher.
Oil prices have been rising since the end of summer, but remain well below their 2014 level.
There is concern among some traders that OPEC will not follow through on its cuts, and that the group of companies that make up the group will decide to increase output as prices rise to take advantage of the higher prices.
OPEC will meet again in November, and there are signs that the group will decide to continue the production deal longer than the previously agreed upon March 2018 deadline. Over the weekend, OPEC Secretary-General said that consultations were already under way to discuss extending the agreement, and even hinted that additional oil-producing countries may join the deal.
If OPEC does decide to extend the agreement, oil prices should at the very least, hold firm, and could easily build on recent gains through the remainder of the years.
Let’s take a closer look at five oil-related stocks that you may want to consider ahead of next month’s OPEC meeting.