This article was originally published on ETFTrends.com.
Oil services stocks and oil ETFs were leading the pack Friday after the Organization of Petroleum Exporting Countries revealed plans to cut production, progress in the U.S.-China trade negotiations and on Schlumberger's fourth quarter revenue beat.
Among the best performing non-leveraged ETFs of Friday, the V anEck Vectors Oil Services ETF (OIH) rose 3.7%, SPDR Oil & Gas Equipment & Services ETF (XES) increased 2.2% and iShares U.S. Oil Equipment & Services ETF (IEZ) advanced 3.2%, breaking above their short-term resistance at the 50-day simple moving average.
Meanwhile, the United States Oil Fund (USO) , which tracks West Texas Intermediate crude oil futures, gained 2.5% and the United States Brent Oil Fund (BNO) , which tracks Brent crude oil futures, was up 2.6%, also moving above their 50-day trend lines.
OPEC Oil Production Cuts
OPEC issued a list of oil production cuts by its members and other major producers for the next six months starting January 1 to bolster confidence in the global crude oil markets as the cartel and its allies move to cut supply to combat the global glut, Reuters reports.
“It’s going to send a signal to the market that they’re serious,” Phil Flynn, an analyst at Price Futures Group, told Reuters. “I think they also want to point out that they’re probably going to be overcompliant with these numbers, especially from Saudi Arabia.”
Related: Top 34 Oil ETFs
The energy markets also strengthened on signals that Washington and Beijing were moving closer to a resolution to the trade spate after China offered to increase U.S. imports by $1 trillion per year.
Furthermore, the oil services sector gained momentum after Schlumberger (SLB), a bellwether for the oilfield services industry, revealed quarterly revenue that topped expectations and forecasted single-digit growth in international markets for 2019, Reuters reports.
SLB shares jumped 7.4% Friday.
For more information on the energy sector, visit our energy category.
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