NEW YORK (TheStreet) -- ConocoPhillips (COP) shares are up 6.5% to $67.33 in trading on Wednesday as the price of a barrel of Brent crude rallied to near $63 in trading today on data that showed inventories were softening.
Oil prices rose today following a report by the U.S. Energy Administration showing that U.S. crude inventories fell by 847,000 barrels, though, due to OPEC's refusal to curtail production, analysts do not expect the fall in inventory to last.
Separately, shares continue to gain following the company's joint $559 million bid with Exxon Mobil (XOM) and Suncor Energy (SU) for exploration rights in the deep water Flemish Pass. If accepted the bid for an exploration license will be the largest in Canada's Newfoundland and Labrador province.
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TheStreet Ratings team rates CONOCOPHILLIPS as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONOCOPHILLIPS (COP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."