Oil stocks jumped premarket Monday after Saudi Arabia’s Ministry of Energy led a surprise oil production cut across several OPEC+ nations. On Sunday the Ministry announced that the Kingdom will implement a voluntary cut of 500 thousand barrels per day from May till the end of 2023.
The cut is a precautionary measure aimed at supporting the stability of the oil market, according to the Ministry of Energy. Oil stocks spiked premarket on the news, with Chevron Corp. CVX, +0.47% climbing 4.1% and Exxon Mobil Corp. XOM, +0.16% rising 4.1%. ConocoPhillips COP, -0.04% is up 5.1% before market open and Devon Energy Corp. DVN, +1.52% is up 5.9%. European oil giants BP PLC BP, +5.21% and Shell PLC SHEL, +4.64% rose 4.8% and 4.4%, respectively, in early trade in Europe.