Big Oil’s stocks soared on Thursday, following the surge in oil prices after U.S. President Donald Trump said that he hoped and expected that Saudi Arabia and Russia would remove a substantial amount of oil from the market.
Oil prices spiked on Thursday morning after President Trump said that he spoke with the Saudi Crown Prince, and hoped and expected that Saudi Arabia and Russia would “cut back approximately 10 Million Barrels, and maybe substantially more.”
Oil prices soared by 20 percent.
Oil stocks followed the movement in the price of oil and rallied by midday on Thursday, with Exxon and Chevron helping the Dow’s rally today.
Shares in Big Oil, however, are down year to date, after the oil price crash from last month, which made all major oil firms to hasten to announce cuts in spending and production guidance, deferral of projects, and search of cost cuts across every part of their portfolios.
The energy sector in the S&P 500 index had slumped by 53.3 percent year-to-date as of April 1, according to Yardeni Research estimates from Standard & Poor’s. Energy was the worst-performing sector among the major sectors in the index, all of which are down year to date as of the beginning of April.
Today, all oil stocks are up, in lockstep with oil prices.
ExxonMobil (NYSE: XOM) was up 8.76 percent at $40.83 at 12:20 EDT, Chevron (NYSE: CVX) was soaring 11.95 percent at $76.75, Shell (NYSE: RDS.A) was surging 10.34 percent at $38.96, BP (NYSE: BP) rallied 7.42 percent, and Occidental Petroleum (NYSE: OXY) soared 23 percent.
Apache Corporation (NYSE: APA) was the top performer among the oil stocks, soaring 25.62 percent after announcing a second major oil discovery in the Suriname basin.
Apache Corporation announced on Thursday it had made a significant oil discovery offshore Suriname in South America, its second major oil find in the area this year.
“Based on a conservative estimate of net pay across multiple fan systems, we have discovered another very substantial oil resource with the Sapakara West-1 well,” said John J. Christmann, Apache CEO and President.
By Tsvetana Paraskova for Oilprice.com
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