The commodity is gaining traction today on the hope that comments from the energy minister of United Arab Emirates, a member of the Organization of Petroleum Exporting Countries, will mean a coordinated production cut, Reuters reports.
Crude oil (WTI) is surging by 10.99% to $29.09 per barrel this morning and Brent crude is climbing by 8.28% to $32.55 per barrel.
Still, concerns about the global oversupply remain and Brent oil is on track to for a weekly loss of about 6%, while WTI crude is set for a loss of about 7%, Reuters noted.
Although investors seem thrilled at the possibility of a deal to cut production and boost prices, analysts are more skeptical and see it as unlikely.
"The comments by the UAE oil minister are pushing prices up ...but we're still in a long-term downturn. That hasn't changed," Hans van Cleef, senior energy economist at ABN AMRO told Reuters. He noted that the jump in prices today is "an indicator that it's not a one-way price movement anymore ...we will see a period of high volatility."
Marathon Oil is a Houston-based oil and gas exploration and production company.
Separately, TheStreet Ratings has set a "sell" rating and a score of D+ on Marathon Oil stock. This is driven by a few notable weaknesses, 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: MROMRO data by YCharts