3 Expensive Oil & Gas Stocks to Avoid After OPEC+ Agrees to Boost Output

The OPEC+ cartel finally succumbed to pressure from the United States government and agreed to increase its oil output. This caused oil prices to decline. In addition, a mild weather report has led to a bear market in the natural gas sector.

Given this backdrop, we think it might be best to avoid overvalued oil and gas stocks Williams Companies (NYSE:WMB), Coterra (CTRA), and Tellurian (NYSE:TELL). Read on.OPEC and its allies agreed to increase their oil output on December 2, in response to the pressure from the United States and rising demand. The group stuck with its existing plan to increase output in January by 400,000 bpd. The price of Brent crude declined more than a dollar per barrel trade at $70 per barrel following the news.

Last Thursday, due to a mild weather forecast, United States natural gas futures were down for a fourth session, with market sentiment turning bearish. In addition, the Moderna (NASDAQ:MRNA), Inc. MRNA) CEO’s, voicing of concerns over the effectiveness of the current vaccines against the new COVID-19 variant, caused global oil prices fall 3% on November 30 amid rising omicron cases and the imposition of travel restrictions by several countries.

Although oil prices recovered somewhat today with the hope that the new variant is less damaging than its predecessors, they are still trading well below their October high of $86 per barrel. Therefore, we think it may be best to avoid fundamentally weak oil and gas stocks The Williams Companies, Inc. (WMB), Coterra Energy Inc. (CTRA), and Tellurian Inc. (TELL), which each looks overvalued at its current price.

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