We’re selling 200 shares of Devon Energy (DVN) at roughly $70.39 each. Following Thursday’s trade, Jim’s Charitable Trust will own 300 shares of DVN, decreasing its weighting in the portfolio to 0.76% from 1.27%. Energy stocks, including Devon Energy, had another strong day Wednesday after OPEC and its oil-producing allies, known as OPEC+, said they will cut crude production by 2 million barrels per day in November. Energy markets had started pricing in the news at the start of the week, with West Texas Intermediate – the U.S. oil benchmark – climbing more than 10% combined from Monday through Wednesday’s close. WTI was trading down slightly Thursday, by 0.46%, at $87.4 a barrel. The decision from OPEC+ was immediately met with strong criticism by the Biden Administration, which has pushed Saudi Arabia – the de-facto head of OPEC – to ramp up output to tame high fuel costs. The White House said yesterday it would consult with Congress on what it can do to reduce the oil cartel’s control over global energy prices. This announcement has us thinking about what the Administration may do next. It has already authorized the draining of the Strategic Petroleum Reserve, but more efforts may be needed to keep prices in check. Could the U.S. look to Venezuela or Iran to get more barrels on the market? We don’t know the answer to that question – but, either way, we want to protect the big profits we have in our overweight energy position in case this oil rally is short lived. We also remain concerned that another interest rate hike by the U.S. Federal Reserve could put downward pressure on the commodity. Our plan is to take this extra cash and recycle it into other stocks that haven’t made as strong of a move this week. We’re selling something high to buy something else low. With the S & P Oscillator still showing an oversold market – it was at minus 4.83% after Wednesday’s session – we remain on the hunt for buying opportunities. This sale will lock in a big average gain of about 50% on our Devon position. (Jim Cramer’s Charitable Trust is long DVN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A pump jack operates at a well site leased by Devon Energy Production Co. near Guthrie, Oklahoma.
Nick Oxford | Reuters
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