The eagerly anticipated meeting of the Organization of the Petroleum Exporting Countries (OPEC) has been postponed, resulting in a decline in oil prices and a negative impact on energy stocks. Originally scheduled to take place in Vienna from November 25-26, the meeting has now been rescheduled for November 30, with no explanation provided for the change.
This unexpected delay has had an immediate effect on the stock prices of major oil companies. Exxon (ticker: XOM) and Chevron (CVX) both experienced decreases of 1.6% and 1.5% respectively. Similarly, APA Corp., the parent company of Apache, witnessed a 3% drop, while Hess (HES) showed a decline of 2%.
OPEC and its allies, which include Russia, have been implementing production cuts to stabilize crude oil prices. Speculation was rife that further cuts may be announced at this particular meeting. Oil prices have already fallen by approximately 20% since reaching record highs earlier this year.
On Wednesday, West Texas Intermediate, the benchmark for the United States, fell by 4.1% to $74.60 per barrel. The international standard, Brent crude, also experienced a decline of 3.8% to $79.29. Both contracts are now roughly 7% below their starting value for the year.
In premarket trading on Wednesday, Exxon saw a decrease of 1.6%, while Chevron fell by an equal amount.