US energy stocks rise as oil jumps on Saudi attack fears
XLE•US energy shares rose premarket as Brent crude gained 2.8% to $111.88 a barrel and West Texas Intermediate rose 2.4% to $99.48 after Houthi attacks in Saudi Arabia heightened supply disruption concerns.
1. Oil prices climb
Brent crude futures rose 2.8% to $111.88 a barrel after touching their highest level since May, while US West Texas Intermediate crude gained 2.4% to $99.48. Prices climbed after further Houthi attacks in Saudi Arabia stoked concern about a broader conflict and crude supply disruptions.
2. Energy shares gain
ExxonMobil rose 1.4% and Chevron gained 1.2%. SM Energy, EOG Resources, ConocoPhillips and Devon Energy gained between 1.3% and 2.5%, while Marathon Petroleum, Phillips 66 and Valero Energy rose 1.6%, 1.9% and 1.5%, respectively.
3. Volatility persists
“Markets remain very volatile and sensitive to geopolitical developments, and we see no near-term triggers for a downward move,” Panmure Liberum analyst Ashley Kelty said.
