Skip to main content

NEW YORK (TheStreet) -- Shares of Marathon Oil (MRO) are higher by 2.88% to $10.70 at the start of trading on Wednesday morning, as the rally in oil prices gives some stocks within the energy sector a boost.

Oil prices popped over 3% this morning as a weak dollar sparked interest in risky assets, Reuters reports. Additionally, the International Energy Agency's comments that expectations for a torrent of oil from Iran have been misplaced.

Crude oil (WTI) is up by 3.34% to $39.56 per barrel and Brent crude is spiking by 2.96% to $40.30 per barrel this morning.

The dollar is dipping on dovish comments from Fed chairperson Janet Yellen regarding the possibility of further interest rates hikes.

"One of the main reasons for Yellen's dovish stance is the low oil price and she made a direct reference to it," Olivier Jakob of Petromatrix consultancy told Reuters.

"For Yellen, low oil prices are not only contributing to low inflation expectations but they are a threat to global economic growth due to the financial stress they are imposing on oil-producing economies," Jakob added.

Scroll to Continue

TheStreet Recommends

Marathon Oil is a Houston-based energy company that explores for, markets and produces crude oil and condensate, natural gas and natural gas liquids.

Separately, TheStreet Ratings has set a "sell" rating and a score of D on Marathon Oil stock. This is driven by a number of negative factors, which TheStreet Ratings believes 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 it covers.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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: MRO

Image placeholder title