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Sept. 16, 2019, 6:07 a.m. EDT

Here are oil plays Citi says will show biggest reaction to surge in crude

In an analyst note, Citi identified the companies it says will have the biggest reaction to the rise in crude oil prices (NYM:CL.1) following the attacks in Saudi Arabia over the weekend. Small- and mid-cap oil explorers and producers that are heavily shorted or where positioning is negative include Extraction Oil & Gas (NAS:XOG) , Whiting Petroleum Corp. (NYS:WLL) , Callon Petroleum Co (NYS:CPE) and Carrizo Oil & Gas . Heavily shorted land drillers, pumpers and sand/logistic companies could be active including RPC (NYS:RES) , U.S. Silica Holdings (NYS:SLCA) , Solaris Oilfield Infrastructure (NYS:SOI) and Patterson-UTI Energy (NAS:PTEN) . Oasis Petroleum (NAS:OAS) is a stock with sensitivity to financial leverage along with Whiting Petroleum and Carrizo Oil & Gas, and heavily shorted offshore drillers Transocean (NYS:RIG) , Valaris (NYS:VAL) , Diamond Offshore Drilling and Noble Corp (NYS:NE) "are likely to experience a large short cover bounce given elevated short interest ratios, but long cycle offshore activity should see less of an impact unless the outages/geopolitical risk premium sustains for an extended period while structural oversupply likely remains," the broker said.

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