3 Oil Stocks Surging After Surprise Output Cut

Some say oil prices could hit $100 per barrel

Digital Content Manager
Apr 3, 2023 at 10:31 AM
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Oil stocks are on the rise after the Organization of the Petroleum Exporting Countries (OPEC+) announced a surprise output cut of roughly 1.16 million barrels per day. Combined with China's reopening and Russia's own output cuts in response to western sanctions, some analysts believe oil prices could hit $100 per barrel. 

MRO Premiums Affordably Priced

Marathon Oil Corp (NYSE:MRO) is surging on the news, last seen up 9.5% to trade at $26.23. The stock broke through overhead pressure at its 60-day moving average, and is now eyeing its first close above the trendline since mid-February. During the past nine months, MRO has added 15%.

The stock is seeing well-priced premiums, per its Schaeffer's Volatility Index (SVI) of 38% that sits higher than just 8% of readings from the past 12 months, implying that options players are pricing in low volatility expectations at the moment.  

Options Traders Blast HAL

The shares of Halliburton Company (NYSE:HAL) are up 9.1% at $34.52 at last check, adding to their 30.2% six-month lead. The $29 region captured the equity's most recent pullback, but the 40-day moving average could be keep a tight lid on today's bull gap. 

Overall options volume is today running at four times the intraday average, with 7,132 calls and 2,836 puts traded so far. Most popular is the April 36 call, with positions being opened there.

Put Traders Love OXY

Occidental Petroleum Corporation (NYSE:OXY) is higher as well, up 6.3% at $66.39 at last glance. The equity earlier conquered the $14 level, which rejected its March rally. Now boasting a 14% year-over-year lead, the shares are eyeing is highest close since Feb. 14.

A sentiment shift could keep tailwinds blowing for OXY. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio stands higher than 92% of annual readings, suggesting long puts have been getting picked up at a much faster-than-usual rate. 

 

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