SUN - 3 Oil Logistics Stocks on Fire Today as Crude Rockets Higher
Oil prices reversed their recent dive on Thursday, with West Texas Intermediate crude futures up 24% on word that the Trump Administration could take actions intended to force Russia and Saudi Arabia to back down from their plans to flood global oil markets.
As a result today, shares of oil and gas midstream and logistics companies Enterprise Products Partners LP (NYSE: EPD), Holly Energy Partners LP (NYSE: HEP), and Sunoco LP (NYSE: SUN) surged 18.3%, 47%, and 26%, respectively.
It's been a tough couple of weeks in the oil patch, and companies that play a role in getting crude and refined products to market are facing big reductions in demand as the COVID-19 pandemic shuts down travel and industrial activity around the world. A recession is all but certain at this point, and global oil demand is expected to fall sharply as a result.