Market Insider

Drilling stocks are rising as oil leaps on hopes of an OPEC deal

OPEC reaches deal to cut oil production

Energy stocks led U.S. markets higher Wednesday as oil prices surged on hopes that a deal from OPEC may cut back production.

Oil drilling stocks, or those focused on exploration and production, were the best performers in the sector. Oklahoma City-based Devon Energy leaped more than 13.5 percent in morning trade, while Marathon Oil and Transocean climbed more than 10.5 percent, and Diamond Offshore Drilling rose 9 percent.

Shares of Helmerich & Payne were about 5 percent higher.

"At this point, if this (OPEC deal) is true, this is definitely a bullish perspective for all oil stocks, especially upstream," the exploration and production companies, said Luana Siegfried, energy equity research associate at Raymond James.

Reports indicated that OPEC struck a deal in Vienna on Wednesday, though the cartel had yet to make any formal announcement as U.S. markets opened.