Research firm Stifel upgraded Anadarko Petroleum (APC) and several other oil producers, citing the decision announced by OPEC yesterday to cut oil production.

OIL OUTLOOK: In response to OPEC's plan to cut production beginning in January, Stifel analyst Michael Scialla raised his fourth quarter and 2017 NYMEX oil price forecast by 7% and 10%, respectively.

UPGRADES: Scialla raised his ratings on Anadarko, EOG Resources (EOG), SM Energy (SM) and Whiting Petroleum (WLL) to Buy from Hold. Anadarko's returns should be one of the best in its peer group as the company increases its production in the Denver-Julesburg and Permian Basin and sells non-core properties, according to Sciallia. The analyst raised his price target on the shares to $86 from $83. Similarly, EOG should benefit as it increases production from its "premium inventory," Scialia believes. Moreover, the company is not hedging oil prices for 2017 and liquids should account for almost 70% of its production next year, versus the peer average of 52%, the analyst stated. He hiked his price target on EOG shares to $120 from $95. In the wake of its expansion in the Midland Basin, SM Energy's returns should be "well above" its peer average, Scialla believes. Noting that the company plans to utilize three more rigs in the Permian Basin, he raised his price target on the stock to $51 from $35. Oil makes up a higher percentage of Whiting's production than most of its peers, and the company added 48 wells in the Williston Basin over the past year, the analyst stated. He raised his price target on that stock to $15 from $8.

PRICE ACTION: In morning trading, Anadarko rose fractionally to $69.33, EOG gained 2% to $104.50, SM Energy advanced 4% to $41.37, and Whiting climbed 3% to $12.60.