Why Chevron, Occidental Petroleum, and Devon Energy Rallied This Week

Shares of large-cap oil and gas companies, including Warren Buffett holdings Chevron (NYSE: CVX) and Occidental Petroleum (NYSE: OXY), along with shale pure-play Devon Energy (NYSE: DVN), were up strongly on the week, rising 12.4%, 14.7%, and 20.1%, respectively, through Thursday. After oil stocks fell in September on mounting recession worries, OPEC+ surprised the markets this week with a larger-than-expected coordinated production cut. On Wednesday, members of OPEC+ agreed to a 2 million barrel-per-day production cut, which was larger than expected and in defiance of U.S. calls to continue producing amid global inflation challenges.