Energy stocks, one of the worst-performing sector this year, spiked on Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.
are all climbing more than 10% on Monday as these heavily shorted stocks experienced "a large short cover bounce," Gruber said.
"Long cycle offshore activity should see less of an impact unless the outages/geopolitical risk premium sustains for an extended period while structural oversupply likely remains," Gruber said. "Thus the bounce in the offshore drillers could fade before other sub-sectors."among drillers as it's already "well positioned" with a possible asset sale by year-end before the positive impact from higher oil prices, Singer said. Kosmos Energy is up 9% Monday.
"We also see a positive set up into the company's November analyst day given robust free cash flow at a lower crude environment," Singer said.may have "disproportionate stock reactions" given its elevated leverage, he noted. Its stock jumped 9% Monday.Refiners took a hit from the Saudi attack as many U.S. facilities depend on heavy crude supplied by countries including Saudi Arabia.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wall Street set to open lower after Saudi attacks; energy stocks surgeWall Street was set to open lower on Monday as the weekend attack on Saudi Arabi...
Read more »
Wall Street slips at open after Saudi attacks; energy stocks surgeU.S. stocks opened lower on Monday as the weekend attack on Saudi Arabian crude ...
Read more »
US blames Iran for strikes on Saudi oil facility: 'Unprecedented attack on world's energy supply'Saudi Arabia has shut down half of its oil production after drones attacked the world's largest oil processing facility in the kingdom, The Wall Street Journal reported.
Read more »
Saudi energy minister says attacks partially halted Aramco productionSaudi Arabian energy minister Prince Abdulaziz bin Salman said on Sunday that at...
Read more »
Saudi energy minister says attacks partially halted Aramco productionSaudi Arabian energy minister Prince Abdulaziz bin Salman said on Sunday that at...
Read more »
Sorry Energy Consumers, Shale Won’t Save YouBooming U.S. oil production has altered the world energy landscape, in part because it is so nimble, but it can’t plug a hole of the size created by the weekend attack on Saudi Arabia.
Read more »