Active Stocks: Whiting Petroleum Corporation [NYSE: WLL] was one of the biggest gainers in Monday’s session, and closed the day with gains of 48.94%. This energy stock was given by a boost by the surge in oil prices after the weekend drone attack in Saudi Arabia. Yesterday, oil prices rose by about 20%, and analysts believe that they are likely to keep rising.
The attack affected about 5% of the world’s total oil supply and markets are adjusting to reflect this disruption in supply. While there are fears that this could impact on global equity markets, energy companies have gained significantly, as can be seen in recent price action in NYSE: WLL. Other companies that had a similar positive price action include Marathon Oil Corp, which gained by 11.6%, and Oasis Petroleum which gained by 29%. Overall, the energy sector rose by 3.4%, outpacing the S&P 500 which gained by 3.3%.
Looking at the daily chart on WLL, it has been on a uptrend recently with light volume. However, yesterday the volume was extremely high, it traded 56 million shares hitting a high of $11.85 for the day and closed at $11.23. As of yesterday, this stock has gained some attention from wall street traders.
One key macro factor that could influence this stock in the day is speculation on this issue. According to Bloomberg, the bigger issue is not the current supply disruption, but rather the exposed strategic vulnerability of the oil supply chain. That’s because, the current spike in oil prices was caused by drones disrupting less than a $1 million of oil. This, in a region that is highly volatile amidst heightened tensions with Iran. On another note, Citi group expects a rally due to oil leverage and short interest.