Rise in Crude Oil Boosts Energy Sector (PBR, APC, HES, PXP)
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Crude oil futures rose this morning, moving up almost $2 to close at $91.98 a barrel on the New York Mercantile Exchange. Several factors are leading to the increase: U.S. crude oil inventories are expected to have dropped this week, marking the fourth consecutive week in which inventories have fallen and, secondly, a large oil spill in Norway has lowered crude oil supply around the globe.
Norwegian analysts estimate that about 21,750 barrels of oil were lost in the spill, considered the second-largest in Norway's history. Accordingly, The Norwegian Petroleum Safety Authority has set up an emergency response center in the Norwegian North Sea, where the spill took place.
Energy stocks are certainly benefiting from today's rise in crude oil prices and seem to be the best performing sector amid today's rally in the broader markets after the Fed announced it would use other tools besides open market operations and the primary credit facility.
Leading the sector higher is one of the world's largest energy companies, Petroleo Brasileiro (NYSE: PBR), frequently called 'PetroBra'. PetroBra was up about 3% yesterday, but closed the day off about a percent after yesterday's market-wide sell-off. Today, shares of PetroBra opened almost right where they left off before yesterday's afternoon sell-off, and have continued to climb, now up more than 9%.
Elsewhere in the sector, Anadarko Petroleum (NYSE: APC) is up more than 4%, Hess Corp. (NYSE: HES) is up nearly 7% and Plains Exploration & Production (NYSE: PXP) is up 4% on the day. These stocks are notable as they are now all trading around new 52-week highs. Anadarko has moved as high as $64.19, also an all-time high, oil refiner and gas retailer Hess hit a new 52-week high at $82.15 and Plains Exploration has moved up to $56.35, also marking an all-time high.
Norwegian analysts estimate that about 21,750 barrels of oil were lost in the spill, considered the second-largest in Norway's history. Accordingly, The Norwegian Petroleum Safety Authority has set up an emergency response center in the Norwegian North Sea, where the spill took place.
Energy stocks are certainly benefiting from today's rise in crude oil prices and seem to be the best performing sector amid today's rally in the broader markets after the Fed announced it would use other tools besides open market operations and the primary credit facility.
Leading the sector higher is one of the world's largest energy companies, Petroleo Brasileiro (NYSE: PBR), frequently called 'PetroBra'. PetroBra was up about 3% yesterday, but closed the day off about a percent after yesterday's market-wide sell-off. Today, shares of PetroBra opened almost right where they left off before yesterday's afternoon sell-off, and have continued to climb, now up more than 9%.
Elsewhere in the sector, Anadarko Petroleum (NYSE: APC) is up more than 4%, Hess Corp. (NYSE: HES) is up nearly 7% and Plains Exploration & Production (NYSE: PXP) is up 4% on the day. These stocks are notable as they are now all trading around new 52-week highs. Anadarko has moved as high as $64.19, also an all-time high, oil refiner and gas retailer Hess hit a new 52-week high at $82.15 and Plains Exploration has moved up to $56.35, also marking an all-time high.
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