Which oil stocks are best positioned when crude rebounds from crash?
Saudi Arabia, Russia trying to ‘drown’ US in oil price war: Harold Hamm
Continental Resources Executive Chairman Harold Hamm assesses tumbling oil prices as two major producers face off.
The battered S&P 500 Energy Sector has raced into bull-market territory despite crude oil prices treading near 18-year lows.
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The sector gained 22.27 percent in the five days through Wednesday, making it the third-fastest trek from a bear market low to a bull market in history. It was up 4.1 percent on Thursday.
“The pain trade is clearly a rally in highly-indebted companies, and many oils clearly fit that category,” wrote Paul Sankey, managing director at Mizuho Securities.
CORONAVIRUS HYPERINFLATION RISK LOOMS, BUY GOLD: PETER SCHIFF
U.S. shale companies were pummeled this month by oil prices that tumbled as much as 63 percent from March 9 when Saudi Arabia slashed prices for its customers and lowered production in response to Russia's refusal to join OPEC in deepening output cuts.
Prices had already been under pressure as the COVID-19 pandemic caused governments to issue “stay-at-home” orders, people to practice social distancing and the cancellation of non-essential travel.
Analysts at Piper Sandler & Co. say the sharp drop in prices will likely have to persist for six to 12 months before serving as the knockout blow to some shale companies. On aggregate, the U.S. shale patch needs West Texas Intermediate crude oil, the benchmark for U.S. prices, to trade in the upper $40s to survive.