Devon Energy (DVN) - Get Devon Energy Corporation Report shares traded higher on Wednesday despite recent oil price volatility following abruptly abandoned plans among a group of some of the world’s most powerful oil producers to broker a new agreement on global production.
At last check, shares of Devon Energy were up 2.73% at $28.60 in premarket trading, recovering some of their losses on Tuesday that followed the abrupt end of talks among OPEC and non-OPEC partners on Monday, which was expected to result in a new deal on oil production.
On Monday, ministers from OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers, abandoned talks after negotiations failed to close divisions between Saudi Arabia, the largest OPEC producer, and United Arab Emirates.
Oil initially rallied on news of the breakdown in talks, but prices retreated as traders focused on the possibility that the strife will cause some national producers to open the taps and start exporting more barrels.
Brent crude settled down $2.63 a barrel, or 3.4%, to $74.53, after hitting a session peak of $77.84, its highest since October 2018. U.S. West Texas Intermediate crude futures settled down $1.79, or 2.4%, to $73.37 after touching $76.98, highest since November 2014.
Crude prices were rising early Wednesday.
TheStreet's Jim Cramer called Tuesday’s price decline in Devon Energy a rare gift, given companies like Devon rarely see down days when oil demand is strong.
“A lot of people think that once oil gets to a certain level we turn on the spigot, but if you want the whole story on oil, you need to go to Devon Energy,” Cramer said on CNBC on Tuesday, noting the company is focused on paying down debt and refining its exploration and output efforts - irrespective of where oil prices currently stand.
"Could oil go to $100? Yes. Would you plan to play with a major? No, you would play with Devon."