Why Shares of ConocoPhillips Slumped Today
Shares in (NYSE: COP) were lower by more than 4% at noon today. The decline comes on the day news broke that eight OPEC+ members will meet on Sunday and discuss a production hike. While there's no guarantee that a production increase will be agreed upon, or that any such increase will put pressure on the price of oil, the threat of it is enough to spook oil investors.
Because ConocoPhillips isn't an integrated oil major (meaning it doesn't have substantive midstream or downstream assets), investors tend to value it based on its reserves (mainly crude oil and natural gas), an assumption about the long-term oil price (which many investors assume is the current price), and an approximation of its break-even price of oil (the price at which its costs and financial obligations are covered).
OPEC+ is reportedly considering raising production to lower the price of oil, as its collective competitive advantage as a relatively lower-cost producer would result in its winning market share back from producers in higher-cost countries like the U.S. Those producers include ConocoPhillips, which generates the majority of its earnings from the U.S.
Source Fool.com
ConocoPhillips Stock
With 61 Buy predictions and not a single Sell prediction ConocoPhillips is an absolute favorite of our community.
As a result the target price of 101 € shows a positive potential of 34.65% compared to the current price of 75.01 € for ConocoPhillips.
