Marathon Oil (MRO) Stock Down Despite Higher Oil Prices, New Offshore Compression Platform
NEW YORK (TheStreet) -- Marathon Oil (MRO) - Get Report stock is down by 0.13% to $15.27 in late-afternoon trading on Thursday, despite the rise in oil prices after yesterday's dip from concerns about the global oversupply of oil.
Fuel demand was "unusually weak" for summer months on Wednesday, Reuters reports. But today, shortcovering has boosted motor fuels' prices about 1%.
"It's always the case a day after a big rally or sell-off for people to feel it was overdone," Phil Flynn, Price Futures Group analyst, told Reuters. Flynn believes $44 is a fair price for oil.
Additionally, earlier today, Marathon Oil announced the company's first gas production through its new Alba B3 offshore compression platform off Equatorial Guinea that will yield approximately 130 million barrels of oil equivalent of proved undeveloped reserves.
"The Alba B3 compression project will allow us to maintain plateau production for the next two years, mitigating base decline, while extending the Alba Field's life by up to eight years," Mitch Little, VP of Conventional, told Reuters.
Crude oil (WTI) is up 1.65% to $45.49 per barrel and Brent crude is up 2.03% to $47.20 per barrel.
Marathon Oil is a Houston-based exploration and production company with operations in North America, Europe and Africa.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate MARATHON OIL CORP as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself, disappointing return on equity and feeble growth in its earnings per share.
You can view the full analysis from the report here: MRO
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