Why Shares in APA Corporation Fell Today

Shares in APA Corporation (NASDAQ: APA) were lower by 4.2% at 11 a.m. ET today. The decline comes after news reports that a group of eight OPEC+ members will meet on Sunday and will consider raising oil production. These countries, which include energy giants Saudi Arabia, Russia, Iraq, UAE, and Kuwait are reportedly looking at raising oil production on top of the increases started in April.While it may seem counterproductive for OPEC+ to raise production, thereby hurting prices, it makes sense given that lower-cost OPEC+ producers want to regain market share from higher-cost producers.Two things make APA sensitive to an OPEC+ production increase. First, it's a focused exploration and production company. It doesn't have the downstream operations of a company like Chevron, which can better manage a period of lower oil prices. Second, its exposure to higher-cost producing assets in the US -- 62% of production was from the US in 2024 -- means it's less able to cope with lower oil prices.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool