Oil Stocks Are Rallying as Crude Prices Jump - Barron's

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Oil stocks were trading higher Monday morning amid solid gains in crude.

U.S. benchmark crude was up more than 5% around $39 a barrel in midmorning trading. Brent crude was up about 4% at $41 and change.

Energy stocks have had a terrible year as the pandemic has curtailed demand. The Energy Select Sector SPDR (ticker: XLE), which holds the energy stocks in the S&P 500, was at a little below $30, up about 2% in early trading Monday. The fund has lost about half its value in 2020.

Exxon Mobil (XOM) was at $33 and change Monday morning, up about nearly 2%. The stock is yielding about 10% as some investors question whether the company can sustain its dividend.

Chevron (CVX) was at around $72, up about 1%.

In other energy news, Chevron announced that it has completed its acquisition of Noble Energy (NBL), an exploration-and-production company.

“We are pleased to welcome Noble Energy’s employees and shareholders to Chevron. Noble’s high-quality assets complement Chevron’s advantaged upstream portfolio, and the combination is expected to deliver strong financial benefits,” Chevron Chairman and CEO Michael Wirth said.

Write to Lawrence C. Strauss at lawrence.strauss@barrons.com

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