Written by: Salma El-Sakka
Shares of companies operating in the energy sector in the United States recorded notable gains in pre-market trading, supported by the strong rise in global oil prices amid escalating geopolitical tensions in the Gulf region, which led to the inclusion of a new risk premium in market calculations.
Strong Gains for Brent and US Crude
Brent crude futures rose by 1.5 percent to reach $111.24 a barrel, hitting their highest level since May. Meanwhile, US West Texas Intermediate crude climbed by 5.2 percent to stand at $109.08 a barrel, achieving its highest level since April. This collective rise comes as traders react to risk developments associated with attacks on infrastructure and reports of targeted vessels in Gulf waters.
Positive Performance for Major Energy Companies
Major US energy companies witnessed an upward performance; shares of oil giants ExxonMobil and Chevron recorded increases of 1.2 percent and 1.3 percent, respectively. The gains also extended to oil and gas production companies such as ConocoPhillips and Occidental Petroleum, alongside other firms like Permian Resources and SM Energy, recording gains ranging between 1.3 percent and 2.1 percent.
Strong Results for Services and Refinery Companies
On the oil services sector front, Halliburton achieved a notable jump of 4.6 percent, benefiting from exceeding third-quarter revenue and profit estimates supported by demand growth in Latin America. Other service companies such as Baker Hughes and SLB also recorded minor gains. In the same context, the refining sector witnessed notable growth, as shares of Marathon Petroleum and Phillips 66 rose by 1.6 percent and 1.9 percent, respectively.
