Categories Energy, Trending Stocks

US energy stocks gain from oil field destruction at Aramco

The weekend greeted us with the grim news of drone strikes at the oil fields of Saudi Aramco, which wiped off almost 50% of Saudi Arabia’s oil output. The destroyed output notably accounts for almost 5% of total global supply, which spurred up to 20% surge in crude oil price.

It has since stabilized at around $65.50, which represents an 8.3% upside from Friday’s price. However, with the blame-game and mud-slinging raising tensions in the Middle East, market experts say the prospects of crude oil breaching even $100 mark cannot be disregarded.

Major US stocks were trading higher during pre-market hours on Monday. Oklahoma City-based exploration company Chesapeake Energy Corporation (NYSE: CHK) was the biggest gainer with the stock soaring over 15% during pre-market hours.

Occidental Petroleum Corporation (NYSE: OXY) and Schlumberger Limited (NYSE: SLB) were trading over 4% higher, while industry mammoths Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) were up over 3%.

Oil giants outside the US – including BP PLC and Royal Dutch Shell PLC – also made steady gains during Monday’s trading hours.

READ: How to safeguard your portfolio in a recession-driven bear market

Saudi Aramco, the state-owned oil giant, is one of the most profitable companies in the world and is expected to float a part of its stake in the US sometime later this year or next year.

In a high-profile drone strike on Saturday, Iran-backed Houthi rebels allegedly destroyed Aramco’s petroleum plants in Abqaiq and Khurais, leading to a total loss of 5.7 million BPD of oil output. Saudi Arabia and the US have come out with strong statements against the aggression.

Even as Iran has denied its hand in the attacks, Yemen-based Houthi group has claimed responsibility for the attack.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top