Crude oil (WTI) is jumping 3.17% to $33.82 per barrel and Brent crude is rallying 2.48% to $35.97 per barrel.
Oil futures are getting a boost for several reasons. First, China took action to aid its slowing economy by reducing its reserve requirement ratio, or the amount of cash banks must hold as reserves, for the fifth time in a year, Reuters reports.
Investors were also hopeful after the Baker Hughes report, released late Friday, showed that the number of rigs drilling for oil in the U.S. dropped --by 13 last week to 400-- for the third straight month. This is the lowest level since 2009, Baker Hughes said.
Also pushing prices up was a new Reuters survey showing an output drop in February from the Organization of the Petroleum Exporting Countries. This is likely due to Iraq stopping northern exports and outages in other producers.
"What we are seeing is U.S. output crashing and that will start to cut into the U.S. oil glut," Price Futures Group analyst Phil Flynn told the Wall Street Journal.
Despite these bullish sentiments, the oil market continues to be saturated in some regions, as the Journal noted that crude-oil supplies at the key storage hub of Cushing, OK increased to a record high in the week ended Friday, according to data provider Genscape.
Meanwhile, Saudi Arabia is collaborating with Venezuela, Qatar and non-OPEC member Russia to freeze oil production at January highes. But unless there's a slash in output, simply freezing production will not really boost prices, according to Goldman Sachs, Morgan Stanley and Barclays.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D+.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, 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.
You can view the full analysis from the report here: COP