Oil stocks rally, with Chevron's leading the Dow's gainers, as attack on Israel by Hamas sends crude prices surging

Oil stocks got a broad boost Monday, as the attack on Israel by Hamas sent crude oil prices surging. The Energy Select Sector SPDR ETF (XLE) jumped 2.2% in premarket trading, with all of the components that have traded gaining ground. Chevron Corp.'s stock (CVX) climbed 2.4%, which was enough to pace the Dow Jones Industrial Average's premarket gainers. Among other more-active energy ETF members, shares of Occidental Petroleum Corp. (OXY) ran up 3.2%, of Exxon Mobil Corp. (XOM) advanced 2.8%, Schlumberger Ltd. (SLB) and Devon Energy Corp. (DVN) rallied 3.2%. Meanwhile, crude oil futures hiked up 3.4% to $85.60, following a seven-session stretch in which they shed 11.6%, after closing Sept. 27 at a 13-month high of $93.68. Benchmark analyst Kurt Hallead said he didn't believe the events in Israel would derail any agreements between the U.S. and Saudi Arabia over oil supply and prices, and he expects the Saudis will continue to enable a "soft landing for oil" in the $70-to-$90 per barrel range.

-Tomi Kilgore

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10-09-23 0631ET

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