Oasis Petroleum (OAS) Stock Rockets As Oil Rebounds

Oasis Petroleum OAS Stock News

Oasis Petroleum Inc. (NASDAQ: OAS) is making a run for the top in the market this morning. The stock is up more than 60% early on with no press releases or SEC Filings to speak of. So, what’s going on? Here’s the scoop:

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OAS Is A Beneficiary Of Oil’s Rebound

Oil prices are rebounding this mroning, with a double-digit rise, and that’s good for Oasis Petroleum. The catalyst behind the rise seems to be increasing tensioins between the United States and Iran.

President Trump tweeted “instructed the United States Navy to shoot down and destroy any and all Iranian gunboats if they harass our ships at sea.” This statement shows a clear escalation in the dispute between the United States and Iran.

So, what does this have to do with OAS stock? EVERYTHING!

At the end of the day, the company is highly dependent on oil. When the value of oil rises, the margins the company enjoys do the same. However, when oil falls in value, the company’s ability to create a profit starts to shrink.

With news suggesting that oil could rise to $100 or more per barrel by the end of Summer, OAS is going to be a prime beneficiary of this move, and investors are paying attention.

What To Watch For Ahead

Moving forward, there are a few things that you want to watch when investing in Oasis Petroleum or any other oil-dependent stock. First and foremost, keep a close eye on the rising tensions in the middle east. When tensions rise among two of the world’s top oil producers, we tend to see oil prices climb.

Beyond that, pay close attention to what’s happening with OPEC. Recently, there has been quite a bit of discussion out of OPEC and non-OPEC nations with regard to bringing down production in an attempt to support growth in the price of oil.

Should all come together, oil could climb in value ahead, making OAS stock one that’s well worth watching.

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