NEW YORK (TheStreet) -- Anadarko Petroleum Corp. (APC) - Get Report stock is increasing by 6.84% to $34.52 in afternoon trading on Tuesday, after oil prices jumped as investors showed optimism for a decline in global production.

WTI crude is rising by 6.13% to $32.20 per barrel on the New York Mercantile Exchange, while Brent crude is gaining by 6.49% to $32.48 per barrel on the Intercontinental Exchange.

OPEC and non-OPEC countries could be nearing a deal to cut production amid one of the largest oil surpluses in decades, Reuters reports.

"The need for a reduction in output is clear - as it has been to us for the past 18 months - but it remains uncertain whether Saudi Arabia and its allies within OPEC are ready to return to the bargaining table," Citi Futures energy futures specialist Tim Evans said in a note, Reuters added.

This morning, The Woodlands, TX-based Anadarko Petroleum's stock price target was cut to $51 from $77 at Credit Suisse, which maintained its "outperform" rating on the oil and natural gas company.

The firm lowered its WTI crude prices estimate for 2016 to $37.75 per barrel, from the previous forecast of $56.44 per barrel.

TheStreet Recommends

Separately, Anadarko Petroleum has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

You can view the full analysis from the report here: APC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

Image placeholder title


data by