Many energy investors were hoping for a larger cut in oil production factoring in a cut in production as high as 1.5 million barrels per day.
But bullish investors were set right when Saudi Arabia opened OPEC opening talks suggesting a cut of just 1 million barrels per day.
The majority of investors in oil stocks are content with the final results of OPEC and an agreement reached that will limit the production of oil, with a production cut of 1.2 million barrels per day.
While oil has yet to recover, with these OPEC production cuts there is less supply and oil prices should start to increase. Leading many to seek to invest and profit from the increase in oil prices.
Provided that the OPEC agreement holds and Russia keeps to their agreement, the results of the OPEC meeting do lead to higher prices and increases in oil stock value.