11 Of The Biggest Stock Winners From OPEC Meeting

With the "will they" or "won't they" dilemma now past following the greenlighting of OPEC's proposal to cut production quota, it is time to keep a tab on some of the stocks that can benefit from this news that is bullish for prices and in turn the companies.

OPEC Finally Agrees On Cuts

OPEC, which met in Vienna on Wednesday, agreed to cut production by 1.2 million barrels per day, marking the first reduction in eight years. Non-OPEC members, including Russia, have also agreed to trim their production quota by 600,000 barrels per day. This was a victory of sorts for the oil cartel, as they have been pounded by depressed oil prices that ate into the profits from their major revenue earnings segment. The reduction will take effect in 2017.

Oil's Lean Patch

In reaction to the news, WTI crude oil ended up 9.3 percent at $49.44 a barrel, although it went above the psychological barrier of $50 intra-day. Oil had a bull run until June 2014 and was trading above the $100/barrel levels. Subsequently, the commodity lost much of its sheen, dropping close to $36 in February this year. Supply glut and the dollar's strength in the wake of rising Fed rate hike hopes proved bearish for the commodity. Since then, oil has been locked in the $40–$50 range, as OPEC began discussing production cut.

Some oil stocks, the fortunes of which reflected the fate of oil, could now begin to look up, especially as oil companies have resorted to several measures in the intervening years, including cost cuts and trimming of capital expenditure, to counter the impact of falling oil prices.

Assuming the most beaten down stocks have the highest potential for a bounce back, these are the stocks investors may consider adding to their portfolio to rise the oil rally:

• Atwood Oceanics, Inc. ATW: Up 11.10 percent at $10.51 after gaining 21 percent on Wednesday.
• Carrizo Oil & Gas Inc CRZO: Up 2.22 percent at $43.28 after advancing 20.4 percent on Wednesday.
• DryShips Inc. DRYS: Up 8.19 percent at $5.64 on top of the 21.25-percent gain notched up on Wednesday.
• ENSCO PLC ESV: Up 7.96 percent after Wednesday's 25-percent rally.
• EP Energy Corp EPE: Up 19.59 percent at $6.35 on top of Wednesday's 26.7-percent gain.
• Marathon Oil Corporation MRO: Up 2.27 percent at $18.48 after gaining 20.8 percent on Wednesday.
• Ocean Rig UDW Inc. ORIG: Up 8.88 percent at $1.84 after gaining 9.5 percent on Wednesday.
• Sanchez Energy Corp SN: Up 3.57 percent at $8.71 on top of the 22 percent rally on Wednesday.
• SM Energy Co SM: Up 3.91 percent at $41.42, adding to Wednesday's 25-percent rally.
• Superior Energy Services, Inc. SPN: Up 0.29 percent at $17.29 on top of 18.7-percent rally on Wednesday.
• Whiting Petroleum Corp WLL: Up 3.19 percent on top of Wednesday's 30-percent-plus rally.

At last check, United States Oil Fund LP (ETF) USO was up 4.67 percent at $11.44. The VelocityShares 3X Long Crude ETN linked to the S&P GSCI Crude Oil Index Excess Return UWTI was up 0.94 percent at $21.54. And the Energy Select Sector SPDR (ETF) XLE was up 1.95 percent at $75.88.

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