Amid the backdrop of the Federal Reserve’s aggressive campaign to control inflation, some hydrocarbon resource specialists like Vaalco Energy (EGY) incurred choppy, volatile trading despite their underlying relevancies. However, a massive global catalyst may have changed the outlook for EGY stock, thus sparking significant activity in both the open and derivatives markets.
First and foremost, crude oil prices surged as the Organization of the Petroleum Exporting Countries and other oil-producing nations – an alliance known as OPEC+ – imposed a surprise production cut. Specifically, the member states reduced output by 1 million barrels per day (bpd). Further, as Barchart contributor Rich Asplund stated, crude gains accelerated after the U.S. dollar index dropped to a one-week low.
