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2 Oil Stocks to Gain from OPEC Production Cuts

Shoshanna Delventhal

Oil prices are staging a comeback, driving Brent crude oil above $70 following an announcement from the kingdom of Saudi Arabia indicating that the world's major crude producers plan to cut supply significantly in 2019. A drop off in crude oil prices in the recent period has weighed on oil and gas companies. Since reaching a 52-week high at the beginning of October, the crude oil price has fallen 18% through Monday morning, dragging the SPDR S&P Oil & Gas ETF ( XOP) down more than 17% over the same period. Ahead of next month's OPEC meeting, Saudi Arabia said it will slash production by 500,00 barrels, or about 0.5% of current global supply.