Oil companies gain as crude prices rise
Shares of oil companies rose on Thursday along with the price of crude, a week ahead of an anticipated production cut by OPEC.
Crude oil prices rose $4.10, or 9.5 percent, to $47.61 on Thursday, as the dollar continued to lose value, making commodities like crude more attractive.
Last week, prices hovered at a near four-year low of $40.81. This week, crude has rebounded ahead of next week’s meeting of the Organization of Petroleum Exporting Countries, which is expected to slash production. Russia suggested it may cut production along with OPEC next week as well.
Since crude’s July record peak of $147.27, its price has tumbled, shedding more than two-thirds of its value.
But along with Thursday’s boost in prices, shares of Anadarko Petroleum Corp. climbed after the independent exploration and production company announced another successful appraisal well in the Jubilee field offshore Ghana. Shares rose $1.06, or 2.9 percent, to $37.51.
Shares of Exxon Mobil Corp., the world’s largest publicly traded oil company, rose 11 cents to $80.18. Chevron Corp. shares rose $1.15 to $79.59.
Stephen Berman, an analyst with Pritchard Capital Partners, said that talks of another stimulus have also boosted energy stocks.
“In 2008, the dollar and commodities have moved in lockstep, dollar weakness and commodity strength for the first six months followed by dollar strength and commodity weakness,” he said. He added that if the euro continues to strengthen, it will likely lift commodities and further fuel the current rally in crude oil prices.