But traders said gains were capped by an estimate of another strong weekly build in U.S. crude stocks, according to Reuters.
West Texas Intermediate rose 1.8% to $49.11 at 12:15 p.m. in New York. Brent was up 2.36% to $54.24.
A U.S. refinery strike, which theoretically meant higher crude supplies in the market, and disappointing U.S. consumer spending and manufacturing data also pared Monday's early gains, Reuters said.
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Traders said oil services company Genscape estimated a stock build of 2.3 million barrels in the Cushing, Oklahoma delivery point for U.S. crude last week, adding to already record-high oil inventories in the country, Reuters added.
"We saw some strength in the market this morning, but that's being sold into," Tyche Capital Advisors managing member Tariq Zahir told Reuters.
"I think people were trying to play off again on Friday's rally on the assumption that the market's found a bottom, but I don't think that's the case yet," Zahir added.
Miller Energy Resources is an oil and natural gas exploration and production company focused on Alaska.
Separately, TheStreet Ratings team rates MILLER ENERGY RESOURCES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MILLER ENERGY RESOURCES INC (MILL) a SELL. This is driven by some concerns, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MILLER ENERGY RESOURCES INC 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, MILLER ENERGY RESOURCES INC reported poor results of -$0.94 versus -$0.60 in the prior year. For the next year, the market is expecting a contraction of 57.4% in earnings (-$1.48 versus -$0.94).
- 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 3266.2% when compared to the same quarter one year ago, falling from -$4.99 million to -$167.91 million.
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, MILL has a quick ratio of 0.67, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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, MILLER ENERGY RESOURCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 86.11%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1852.63% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full analysis from the report here: MILL Ratings Report