Oil prices surged on Monday as OPEC extended production cuts and a trade truce between the U.S. and China boosted the demand outlook.
West Texas Intermediate crude futures rose 2.3% to $59.82 a barrel on Monday morning, briefly surpassing $60. Brent crude gained 2.4% to $66.32 a barrel.
According to CNBC columnist Maggie Fitzgerald, members of OPEC are meeting in Vienna this week to discuss extending the supply cuts for nine months. The organization has been reducing oil output since 2017 in order to combat falling prices amid a global economic slowdown and an increase in U.S. production.
The commodity also got a boost from a trade truce between the U.S. and China as President Donald Trump and Chinese President Xi Jinping agreed to not impose new tariffs on imported goods at the G-20 Summit in Japan over the weekend.
Several of the U.S.'s largest energy companies also benefited from the news. The GuruFocus Industry Overview chart shows the industry is made up of the following sectors:
By sector, shares of drilling company Helmerich & Payne Inc. HP were up 3% on Monday morning at $52.14, while offshore driller Transocean Ltd. RIG gained 4.6% to $6.75.
In the exploration and production space, shares of ConocoPhilips COP were up 2.62% at $62.64 and EOG Resources Inc. EOG shares rose 1.51% to $94.59.
Exxon Mobil Corp. XOM and Chevron Corp. CVX, leaders in the integrated oil and gas space, also posted small gains. Exxon shares rose 0.97% to $77.37, while Chevron swelled 0.89% to $125.55.
Shares of midstream companies Enterprise Products Partners LP EPD and Kinder Morgan Inc. KMI advanced 1.11% and 0.81%. Refiner Philips 66 PSX saw shares climb 1.01%, while oilfield services provider Schlumberger Ltd.’s SLB shares advanced 1.28%.
Disclosure: No positions.
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