The price of West Texas Intermediate (WTI) Crude rose above the $90/barrel mark in the second half of September 2023. Oil prices gained significant momentum in the beginning of the autumn season as investors broadly expected a tightening of the global supply.
Russia, the second largest oil producer on the planet, had promised that it would commit to a new OPEC+ supply cut. Meanwhile, Saudi Arabia, also one of the three largest producers in the world, stated that it would “not forfeit the precautionary approach” to oil production policy. It was steadfast in this position along with some other Middle Eastern allies.
The United States saw its unemployment rate rise when the report was released in September. Moreover, wage growth also cooled as the Fed continued its battle against inflation. U.S. oil rigs have maintained a measure at their lowest level since February 2022.
Last week, Hamas launched a massive assault into Israeli territory. Heavily armed fighters entered civilian-heavy residential areas, which resulted in the deaths of hundreds of civilians and the capture of more than 100 citizens, according to current reports. Oil prices saw an uptick as some reports suggested that Iran aided Hamas in the planning of the attack. If those claims are proven, that could see the reintroduction of sanctions and the significant curbing of Iranian oil in the global supply.
Investors should watch top U.S. oil stocks in the final months of 2023. Exxon Mobil (NYSE:XOM) is one stock that deserves your attention. This company saw its net income drop 53% in the second quarter (Q2) of fiscal 2023.
