CPE - Why Oil Stocks Are Going Ballistic Today
Oil prices are in rally mode today. WTI, the main U.S. oil price benchmark, was up 4.5% to about $39 a barrel by 10:15 a.m. EDT on Friday. Meanwhile, Brent, the global benchmark, surged 5.3% to above $42 a barrel. Fueling the rebound in crude prices was a report that OPEC and its partners had agreed to extend their historic production cut by another two months. On top of that, the U.S. government reported a stronger-than-expected jobs report in May, suggesting that demand for gasoline will continue to accelerate as more people return to work.
Surging crude prices fueled a ferocious rally in oil stocks. Shares of Callon Petroleum (NYSE: CPE) and QEP Resources (NYSE: QEP) zoomed more than 35% in early-morning trading. Meanwhile, others like Marathon Oil (NYSE: MRO), Occidental Petroleum (NYSE: OXY), Apache (NYSE: APA), and Continental Resources (NYSE: CLR) all rallied by at least 10%.
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