Small shale producers and offshore drillers are among stocks soaring after the wider OPEC+ group agreed over the weekend to extend its record output curbs.
Saudi Arabia increased prices for some crude exports by the most in at least two decades.
Stock gainers include Chesapeake Energy Corp., Denbury Resources Inc, Tellurian Inc., California Resources Crop., Oasis Petroleum Inc. and Callon Petroleum Co., all rising over 40 per cent.
Additionally, offshore driller Noble Corp. rose over 100 per cent. Short interest is about 17 per cent of free float, according to data compiled by Markit.
Still, oil erases early gains after Saudi Arabia said it wouldn’t continue its additional, deeper output curbs after June.
“The extension was expected and anticlimactic,” Piper Sandler analyst Bill Herbert told clients in a note. “The complexity factor associated with oil continues to be exceedingly elevated,” he added.
Goldman Sachs thinks oil has already more than priced in an OPEC+ agreement to extend supply cuts through July, with prices nearing levels that could prove self-defeating to the market rebalancing.
In Canada, the S&P/TSX Energy Index rose about one per cent to its highest level since March 9.
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