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