The price of West Texas Intermediate (WTI) Crude Oil hit a 2-year high of $58.40 in NY trade yesterday. For the month of November, the price of WTI has rallied over 10%.
Much of the bullish trade has been driven by comments from OPEC members that the cartel will be able to extend their oil supply curbs put in place earlier this year.
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Currently, OPEC, Russia and nine other producers have reduced oil output by 1.8 million barrels per day. Crude Oil prices have firmed on the expectations that they will extend that agreement beyond March 2018 when they meet in Vienna next week.
If they are successful in extending the deal, it would give Crude Oil prices an additional lift towards the $60.00 area.
Shares of WPL traded to $33.35 on November 7th.
News of Shell Oil divesting from the company triggered a sharp $3.00 drop to $30.35.
With the current share price at $31.55, it’s reasonable to expect WPL shares to trade back above the $33.00 handle if WTI trades back to $60.00.
Woodside Petroleum
