Why Enterprise, Halliburton, Suncor, BP, Occidental, and Callon Petroleum All Rocketed Higher Today
Shares of North American midstream energy giant Enterprise Products Partners (NYSE: EPD) rose over 5% today, peaking above that mark in the early afternoon. At roughly 2 p.m. EST, British integrated oil major BP (NYSE: BP) was up about 9%, and Canadian oil sands specialist Suncor Energy (NYSE: SU) was up roughly 10%. Global energy services giant Halliburton (NYSE: HAL) was having an even better day, with its stock up around 11%, while tiny U.S. onshore energy producer Callon Petroleum (NYSE: CPE) was higher by 13%. And large, diversified U.S.-based driller Occidental Petroleum (NYSE: OXY) had advanced an impressive 14%. The theme running through all of these gains is the price of oil, but there's a different reason why for each case -- and the reason was more than just oil was up.
Exiting 2020, energy prices were off of their lows but still bouncing along at a level that made it difficult for many drillers to turn a profit. Although demand had started to recover from the hit it took when countries around the world effectively shut their economies to slow the spread of the coronavirus, OPEC's efforts to curtail supply also played a vital, stabilizing role. There's a lot more to that story, but this is the basic backdrop for the rally today.
Image source: Getty Images.
Source Fool.com
