Market Insider

Energy stocks rocket as oil prices near November highs

Motorists queue to buy petrol at a fuel station in Ahaoda in Nigeria's oil state in the Delta region.
Akintunde Akinleye | Reuters

Shares of oil and gas companies climbed Monday as crude prices neared November highs.

Marathon Oil shares rose 4.3 percent to $12.78, while Murphy Oil, Apache and Transocean were more than 2 percent higher. It came as West Texas Intermediate prices hit $47.72 a barrel and Brent Crude prices hit $48.97, both topping six-month highs.

Natural gas companies like Devon Energy and Williams also popped.

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected," Goldman Sachs said in a research note, reversing its views on the commodity.

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Oil prices were boosted amid supply outages in Nigeria and wildfires in Canada, two major exporters.

In Nigeria, an activist group protesting environmental pollution and oppression attacked pipelines, sending output to a 22-year low, according to Barclays analysts Miswin Mahesh, Michael Cohen and Warren Russell. Meanwhile, the housing for oil field workers was fields "effectively decimated" by a blaze in Alberta, Dennis Gartman told CNBC last week.

"In our view, these unplanned outages have helped cushion some of the effect of Iran's speedy recovery of exports," the Barclay's analysts wrote in a research note. "What was expected to be a source of supply over the tail end of this year is now already factored in, and political developments in Nigeria need to be assessed more carefully now to gauge the pace of return of these supplies and their effect on market balances."

Shares of Marathon are down more than 53 percent over the past year as historically-low oil prices have pressured shares. Apache has seen shares fall more than 13 percent in the past 12 months, while Murphy has fallen 32 percent and Transocean has fallen 54 percent in that time.

— CNBC's Gina Francolla contributed to this report.