OPEC Gets It Right

At least for the next two months, OPEC may have helped push crude prices higher without any reduction in overall crude supply. If that happens, the cartel's rhetoric could once again prove more important than its actions.

Stock Talk

OPEC's actions helped boost energy equity prices on Thursday, and the price performance of the majors was no exception. Exxon Mobil (XOM - commentary - Cramer's Take), Chevron (CVX - commentary - Cramer's Take) and others all benefit from a more bullish outlook for crude prices.

So, too, should large service companies such as Halliburton (HAL - commentary - Cramer's Take) and Schlumberger (SLB - commentary - Cramer's Take).

However, the warm weather of this week and likely next may pressure these stocks in the short run, especially if both crude and natural-gas inventories turn bearish in the near term.

Yet, assuming a more normal winter -- combined with OPEC's bullish action -- a pre-Christmas dip in energy equities may well turn out to be the best present of all.

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At time of publication, Edmonds was long Exxon Mobil, although holdings can change at any time.

Christopher S. Edmonds is partner and managing director of research at Pritchard Capital Partners, a New Orleans energy investment firm. He is based in Atlanta. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Edmonds cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.