VLO - Why Apache Corp. Vermilion Energy and Valero Energy All Rose Double Digits in September
In September, shares of oil drillers Apache Corp. (NYSE: APA) and Vermilion Energy (NYSE: VET) rose 18% and 17%, respectively, according to data provided by S&P Global Market Intelligence. But it wasn't just drillers that were up big; refiner Valero Energy (NYSE: VLO) jumped 13% as well, which seems a bit counterintuitive -- until you look at the bigger picture.
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There wasn't much news on the two drillers in September that would have caused notable stock price advances. Apache and Vermilion each announced dividends, but there was no change from prior disbursements. The big news was a terrorist attack that caused a material reduction in Saudi Arabian oil production. This presented a worldwide headwind for the sector, because Saudi Arabia is one of the largest oil producers in the world. Oil prices spiked on this very real supply disruption.