NEW YORK (TheStreet) -- BP (BP) shares are up 1.84% to $42.86 in afternoon trading on Thursday as the oil sector benefits from rising crude prices today.
Turmoil in the Middle East and falling U.S. stockpiles are the reasons for the today's rally as U.S. crude climbed from negative territory to close trading up $1.74, or 2.95%, to $60.72 a barrel, its highest point in over a week.
Industry standard Brent crude for June delivery is up 2.48% to $66.64 per barrel while West Texas crude for June delivery is also up 3.1% to $60.61 per barrel.
Intensifying violence in Iraq has raised the specter of a disruption of crude output from the country while a report from industry watcher Genscape suggested that U.S. crude stockpiles at the Cushing, OK hub fell by almost 740,000 barrels between last Friday and Tuesday.
Separately, yesterday BP reached a settlement agreement with Haliburton (HAL) resolving all outstanding issues the two companies have had with each other over their roles in 2010's Deepwater Horizon disaster in the Gulf of Mexico. The terms of the settlement were not made available.
"We are pleased to have reached an amicable resolution with BP, our valued customer, that allows us to close another chapter in the Deepwater Horizon case for Halliburton. This agreement allows Halliburton to strengthen its relationship with BP by negotiating a global master services agreement between the companies," said Haliburton CEO Dave Lesar.
TheStreet Ratings team rates BP PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: