Where stock prices were lower during the pre-market trading hours on April 22, the second half of the day could be shaping up better thanks to energy stocks. In fact, stocks in the energy sector were among some of the biggest gainers in the major exchanges. This was due to higher oil prices.
What Brought On Higher Oil Prices In April?
An announcement from the US brought a scramble for higher prices. The global super power said that it would no longer grant waivers to countries that buy oil from Iran. This brought about the anticipation of a tighter oil market. With that investors assumed tightening supply.
In 2018, the US government allowed certain exemptions to sanctions for doing deals with Iran to the 5 countries purchasing the commodity from Teheran. These countries were China, South Korea, Turkey, Japan and India.
Winning Oil And Gas Stocks
In the wake of this move, shares of oil and gas stocks catapulted on April 22. Crude Oil futures were up over 2% and Brent Crude futures jumped nearly 3% higher. Some of the big winners in the oil market included the likes of Exxon Mobile (XOM), Chevron (CVX), and Marathon Oil (MRO).
Other big winners included penny stocks. Chesapeake Energy (CHK), Denbury Resources (DNR), and Yuma Energy (YUMA) were among the big winners trading at lower prices on April 22. Could this trend in oil and gas stocks continue? Leave your comments below and weigh in on this latest stock market news.