Why Oilfield Service Stocks Are Rallying Today
Oil prices rebounded sharply on Thursday, thanks to a series of tweets by President Trump. That rally sent most energy stocks soaring, including those of oilfield service companies. Several popped double-digits at one point in the day, led by TechnipFMC (NYSE: FTI), Oceaneering International (NYSE: OII), Helmerich & Payne (NYSE: HP), and Halliburton (NYSE: HAL).
Oil prices rose a remarkable 25% on the day, settling right above $25 per barrel. Fueling that massive rally were tweets by President Trump that Russia and Saudi Arabia had agreed to cut their oil production by as much as 15 million barrels per day. If true, that would help stabilize the oil market, which has been pulverized by the massive disruption in demand due to the COVID-19 pandemic.
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Source Fool.com
