There is a surge in oil prices amid the production disruptions prevailing across Saudi Arabia currently. This may affect an array of stocks in energy space, as per strategists at Goldman Sachs.
According to a note Goldman issued to its clients, the companies having the largest 2019 Quarter 4 possible operating cash-flow uplift from the increasing oil prices incorporates names such as Occidental Petroleum (OXY), Hess (HES), Apache (APA) and Cimarex Energy (XEC) among others.
As for companies which have the highest 2019 Quarter 4 possible free cash flow uplift include Apache, Cimarex and Murphy Oil (MUR).
The prices for the US oil benchmark, West Texas Intermediate (WTI) surged nearly by 10 percent on Monday, surpassing $60 per barrel. Well, the prices still are below this year’s high of nearly $66 per barrel from April. Additionally, WTI dropped more than 2 percent previous week.
On the other hand, the prices for international oil benchmark Brent witnessed a surge of more than 10 percent on Monday, at $67 per barrel.
The military strikes affected major crude production units across Saudi Arabia over weekend, reducing the oil production in the Middle East country by around 5.7mn barrels a day.
The length of this disruption is not known, noted Goldman analysts.