Sector Snap: Energy
Source: Bloomberg Businessweek (8/15/11)
"Oil jumped to the highest level in more than a week."
Energy companies led the broader market recovery Monday, driven by a jump in oil prices and a $1.4 billion acquisition by offshore rig contractor Transocean Ltd.
Oil jumped to the highest level in more than a week. The 2.9% rise to near $88/bbl. all but erased losses from last week, when prices swung wildly. In its recent trading range of between $80 and $90/bbl., oil remains above last year's average of $79.64/bbl.
In a note to clients Monday, Raymond James analyst Darren Horowitz said he remains optimistic that oil prices will continue to rise and push energy stocks higher, even in periods of slower economic growth. That means the recent sell off among these stocks could spell a buying opportunity for investors.
He believes high oil prices mean "meaningful growth in oil service demand and oil service earnings over the next three to five years." . . .View Full Article