Crude oil (WTI) is climbing by 10.26% to $42.56 per barrel this afternoon, while Brent crude is up by 9.85% to $47.39 per barrel, according to the CNBC.com index.
Oil prices are up following yesterday's report from the Energy Information Administration that showed U.S. crude stockpiles fell by 5.5 million barrels last week.
However, concerns about the global supply glut persist, and the report by the EIA also noted that total oil and refined fuel stockpiles hit a record high, with the U.S. continuing to pump more than 9.3 million barrels of oil per day, The Wall Street Journal reports.
"U.S. crude oil inventories are likely to hit new highs in [the fourth quarter of] 2015, and again throughout 2016 until something gives," Citi Research said in a report, according to The Journal.
Separately, TheStreet Ratings team rates CABOT OIL & GAS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CABOT OIL & GAS CORP (COG) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- COG, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 42.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for CABOT OIL & GAS CORP is rather high; currently it is at 51.39%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, COG's net profit margin of -8.98% significantly underperformed when compared to the industry average.
- CABOT OIL & GAS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CABOT OIL & GAS CORP reported lower earnings of $0.24 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus $0.24).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CABOT OIL & GAS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 123.2% when compared to the same quarter one year ago, falling from $118.42 million to -$27.51 million.
- You can view the full analysis from the report here: COG Ratings Report