Oil and energy stocks rallied in Monday trade following an unscheduled meeting of OPEC. A deal to stabilize oil prices is in the works, but the question of all countries agreeing on a freeze in production continues to loom.
The meeting helped oil stocks rally on Monday in hopes of an agreement that will help stabilize the fluctuating commodity.
Three stocks that rallied on Monday are:
1. Murphy Oil (MUR)
Murphy Oil rallied 2.19% on Monday solely on the news of an OPEC meeting. News from the company has been relatively quiet. Oil prices have slid slightly on Tuesday, with crude oil down 1% on the chances of a production deal between Saudi Arabia and Iran being stalled.
Murphy stock is expected to remain volatile until OPEC comes to an agreement.
2. Diamond Offshore Drilling (DO)
Diamond Offshore Drilling rallied on positive data on Monday. The company, also influenced by crude oil prices, rallied on the announcement that the natural gas rig count in the United States rose by 5, up to 511 on Monday.
The announcement marks the 11th increase in rig counts in a 13-week period.
A rise in US oil rigs is a positive for Diamond, as drillers were in trouble due to falling rig counts. The company further benefited last week after a Brazil oil update pointed to improved drilling in Brazil.
3. Transocean, Inc. (RIG)
Transocean rallied over 4.6% on Monday and is down 1.47% in premarket trading on Tuesday. The company benefitted from higher crude prices on Monday, but a dip in prices on Tuesday is expected to cause the stock to suffer a selloff.
The company has secured two contracts in the second quarter, and it has a high backlog compared to its competitors.
An OPEC agreement has the potential to help Transocean stock rally the most compared to other companies on this list.
