The Winners and Losers From Last Week’s Oil Surge

On Sunday, Sept. 15, coordinated strikes on Saudi Arabian oil facilities stripped the country of more than 5 million barrels per day of production capability, representing a 50% decrease in the amount of daily Saudi Arabian oil capacity. The following Monday was one of the craziest trading days year to date. Oil ended the day up 12.9%, and all three major stock indexes were negative due to concerns that higher oil prices could encourage a global recession. Oil proceeded to shed about half its gains the following day when Prince Abdulaziz bin Salman, the energy minister of Saudi Arabia, estimated that oil production would be restored to normal levels by the end of September.

Although investors shouldn't make investment decisions based on weekly price action, taking note of the way different companies reacted to such volatile swings in oil prices allows investors to reevaluate existing and potential holdings in line with their risk tolerance. Risk-averse investors may find themselves shocked at this weeks volatility and may want to reconsider some of their holdings, whereas investors with larger risk appetite and long-term time horizon may find many of these investments attractive and worth considering.  

Drillers were the biggest winners. Patterson-UTI, Nabors Industries, and Helmerich & Payne were up 20.97%, 18.26%, and 14.33% respectively.

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Source: Motley Fool
(September 23, 2019 - 5:08 PM EDT)

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