NEW YORK (TheStreet) -- Marathon Oil (MRO - Get Report) shares are rallying 2.23% to $11.70 early Tuesday afternoon, boosted by higher oil futures as investors anticipated the supply glut would be alleviated by recent supply outages from Canada to Nigeria.
In Alberta, Canada, wildfires have led to oil sands shutting down their operations. This has removed about 1.6 million barrels a day of production, or about 1% of the global supply from the market, according to consulting firm Energy Aspects, the Wall Street Journal reports.
"The wildfires in Alberta, rising tensions and further disruptions to crude exports in Libya, and a new outage in Nigeria amid increasing violence have definitely added some bullish pressure to prices," Societe Generale oil analyst Michael Wittner stated.
Crude oil (WTI) is jumping 2.14% to $44.38 per barrel and Brent crude is up 3.51% to $45.16 per barrel.
Despite this bearish sentiment, analysts believe the disruptions to be temporary.
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 poor profit margins, 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 article's author.
You can view the full analysis from the report here: MRO