NEW YORK (TheStreet) -- Marathon Oil Corp. (MRO) - Get Report shares are surging on Wednesday afternoon as oil prices rallied on the latest report from the U.S. Energy Information Administration (EIA).
Inventories of distillates dropped by more than 4 million barrels, better than expectations for a 2 million barrel gain.
These results sent oil futures up today. Crude oil (WTI) is jumping 1.46% to $31.91 per barrel and Brent crude is increasing 1.24% to $31.84 per barrel, according to the CNBC.com index.
"The draw in distillate stocks is bullish, but we know there was cold weather in the United States in the last week, so I would say the reason behind the draw has something to do with the cold winter weather and, as such, the impact should be short-lived," Tamas Varga of PVM Oil Associates told CNBC.com.
Meanwhile, crude supplies increased by 8.4 million barrels last week, bringing the total number to 494.9 million barrels, which is the highest on record.
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, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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: MRO