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3 Expensive Oil & Gas Stocks to Avoid After OPEC+ Agrees to Boost Output -Breaking

by Mike Robinson

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© Reuters. 3 Expensive Oil & Gas Stocks to Avoid After OPEC+ Agrees to Boost Output

The United States government finally forced the OPEC+ cartel to yield to its demands and offered to boost oil production. The result was a decline in oil prices. The natural gas market has been hit by a bearish weather report. We think that it is best not to invest in overpriced oil and natural gas stocks Williams Companies, Coterra (CTRA) and Tellurian. Keep reading. OPEC, its allies, agreed to raise their oil output December 2, as a response to rising US demand. The group remained true to its original plan of increasing oil production by 400,000 barrels per day in January. Following the announcement, oil prices fell more than $1 per barrel to $70/barrel

The market sentiment was bearish last Thursday due to mild weather. The Additionally, Moderna (NASDAQ:), Inc. MRNA) CEO’s, voicing of concerns over the effectiveness of the current vaccines against the new COVID-19 variant, caused global oil prices fall 3% on November 30 amid rising omicron cases and the imposition of travel restrictions by several countries.

While oil prices are now trading at $86 per barrel, they still remain well below the Oct high. We believe it is best to stay away from fundamentally weak oil-and gas stocks, The Williams Companies, Inc., Coterra Energy Inc., and Tellurian Inc., which look overpriced at their current prices.

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