Why Oil Stocks Are Surging Today
The U.S. oil price benchmark, WTI, rallied nearly 4.5% today, closing above $58.50 a barrel. That rebound sent energy stocks soaring. Leading the way were Centennial Resource Development (NASDAQ: CDEV), California Resources (NYSE: CRC), Whiting Petroleum (NYSE: WLL), Transocean (NYSE: RIG), and Valaris (NYSE: VAL), which all rallied more than 10% on the day.
Two factors fueled the rally in oil prices today. First, the U.S. Energy Information Administration published its weekly report on oil storage levels, which showed a decline of 4.9 million barrels. That was much higher than the 1.7-million-barrel drop that analysts expected and an improvement from the 1.6-million-barrel inventory build last week. The report suggests that demand came in above supplies, which would be a positive development for the currently oversupplied oil market.
Image source: Getty Images.
Source Fool.com
