Marathon Oil, Occidental Petroleum stocks soar to lead energy sector to broad gains

Marathon Oil, Occidental Petroleum stocks soar to lead energy sector to broad gains

Energy stocks traded broadly higher Monday, as the rally in crude oil prices toward a 13-month high helped fuel investor interest in the sector. The SPDR Energy Select Sector ETF XLE, +4.18% ran up 4.1%, and was the biggest gainer among the SPDR ETFs tracking the S&P 500’s SPX, +0.74% 11 key sectors, with 23 of 24 equity components gaining ground. The energy ETF was headed for a sixth straight gain, which would be the longest such streak since the six-day stretch ended June 8, 2020.

Among the components, shares of Marathon Oil Corp. MRO, +13.10% shot up 12.9% toward a near one-year high to pace the gainers, while Occidental Petroleum Corp.’s stock OXY, +12.81% was second with an 11.8% run up toward an 11-month high. Among the ETF’s other more active components, shares of Exxon Mobil Corp. XOM, +4.30% rose 4.1%, Kinder Morgan Inc. KMI, +4.10% climbed 3.8% and Apache Corp. APA, +9.99% advanced 9.9%. “Numerous drivers appear to continue to support investors’ appetite for increased risk, which favors cyclical plays such as the energy sector,” Truist analyst Neal Dingmann wrote in a note to clients. Meanwhile, crude oil futures CL00, 0.62% surged 1.8% to $57.84, putting them on track for the highest close since January 2020, amid pandemic-recovery optimism and expectations for the passage of a U.S. economic stimulus bill. The gains come as the S&P 500 SPX, +0.74% rose 0.3% toward a record close.

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