Devon Energy, Diamondback Energy And Suncor Energy Shares Are Rising: What's Going On?

Shares of Devon Energy Corp DVN, Diamondback Energy Inc FANG and Suncor Energy Inc SU are trading higher Monday after OPEC+ made a surprise announcement to slash oil output.

What Happened: OPEC+, a group of several oil-exporting countries, announced plans to cut oil production by approximately 1.16 million barrels per day on Sunday. The move represents about 1% of world supplies and is expected to cause an immediate rise in oil prices. 

According to a New York Times report, Russia appears to be struggling to keep production levels elevated in the wake of its invasion of Ukraine as several service companies have pulled back or halted operations.

Saudi production has also been below expected levels in recent months. Saudi Arabia called the move a precautionary measure aimed at supporting the stability of the oil market.

The news of the cuts comes just days after OPEC+ leaders said they did not expect to change output levels. Production is now expected to slow beginning in May.

Front month WTI Crude futures were trading up 5.67% at $79.96 and Brent Crude futures, the international benchmark, were up 4.99% at $83.06 at the time of publication.

Check This Out: OPEC+ Decision On Oil Production Cuts Just Roiled These Already Volatile Assets

Price Action: Devon Energy was up 5.71% at $53.50, Diamondback Energy was up 5.5% at $142.60 and Suncor Energy was up 5.44% at $32.74 at the time of writing, according to Benzinga Pro.

Photo: C Morrison from Pixabay.