In an analyst note, Citi identified the companies it says will have the biggest reaction to the rise in crude oil prices following the attacks in Saudi Arabia over the weekend. Small- and mid-cap oil explorers and producers that are heavily shorted or where positioning is negative include Extraction Oil & Gas (XOG), Whiting Petroleum Corp. (WLL), Callon Petroleum Co (CPE) and Carrizo Oil & Gas (CRZO). Heavily shorted land drillers, pumpers and sand/logistic companies could be active including RPC (RES), U.S. Silica Holdings (SLCA), Solaris Oilfield Infrastructure (SOI) and Patterson-UTI Energy (PTEN). Oasis Petroleum (OAS) is a stock with sensitivity to financial leverage along with Whiting Petroleum and Carrizo Oil & Gas, and heavily shorted offshore drillers Transocean (RIGN.EB), Valaris (VAL), Diamond Offshore Drilling (DO) and Noble Corp (NE) "are likely to experience a large short cover bounce given elevated short interest ratios, but long cycle offshore activity should see less of an impact unless the outages/geopolitical risk premium sustains for an extended period while structural oversupply likely remains," the broker said.
-Steve Goldstein; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
09-16-19 0607ETCopyright (c) 2019 Dow Jones & Company, Inc.