Shares of U.S. oil and gas producers Diamondback Energy (NASDAQ: FANG) and Centennial Resource Development (NASDAQ: CDEV), along with deepwater drilling rig provider Transocean (NYSE: RIG) all rallied big on Monday, rising 5.8%, 5.5%, and 7%, respectively, as of 3:50 p.m. ET.

Oil stocks found their footing as oil prices rose more than 2% Monday. The rise in oil has come after a month-long decline from the June peaks; however, it appears as though prices may be stabilizing in this area, which would still enable producers to make handsome profits while also incentivizing new drilling.

A huge heatwave, along with more tensions in the Russia-Ukraine war over the weekend, may be helping to put a floor under oil and gas prices today. In addition, a prominent analyst published a bullish note on U.S. oil stocks, citing Diamondback specifically as a favorite. 

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Source Fool.com