What a difference a day makes. After oil prices dropped lower Tuesday on rumors of no OPEC deal on output, oil is gushing 7% higher Wednesday. The cause: New reports that a deal is coming.
It’s “probably the most bullish outcome you could have,” TheStreet’s Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC’s “Mad Dash” segment Wednesday. The newest report says OPEC members will cut oil production by 1.2 million barrels per day, the bulk of it by Saudi Arabia.
This is great news for U.S. oil producers, Cramer said. Now they can increase oil production without negatively impacting the price.
The biggest winners are companies operating in the Permian Basin, where the cost basis for pumping is already low.