CREDIT SUISSE: Here are the 11 stocks poised to get the biggest boost from spiking oil prices
- The weekend attack on two of Saudi Arabia's main oil facilities sparked a rally in global prices for the commodity.
- Oil stocks are surging as investors are looking to capitalize on the expected tightening supply in the coming weeks.
- Credit Suisse published a list of companies who stand to benefit from a rise in prices, in order of whose cash flow per share would rise the most in the event oil prices jumped $5 per barrel.
- Listed below are 11 oil stocks that could get the biggest boost from swelling crude prices.
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Oil stocks are soaring as drone strikes on key facilities in Saudi Arabia threaten to upend the global market for the treasured commodity.
Crude future prices spiked as much 20% following the attack. Saudi Arabia is responsible for close to 6% of the world's total oil production, and the damaged facility could potentially disrupt output for several weeks. But the timeline for repairs is still unknown.
"If production can be restored quickly, we'd expect oil prices to rally several dollars as the market prices-in increased geopolitical risk," analysts from Credit Suisse said in a note to clients.
They continued: "If Saudi Arabia requires an extended period of time to restore production, we would expect prices to spike in order to thwart demand, as spare capacity is insufficient to offset the sustained loss."
The firm also ranked companies who stand to gain from a rise in prices in order of whose cash flow per share would rise the most in the event oil prices jumped $5 per barrel.
Here are 11 companies whose stocks could get the biggest boost from a rise in oil prices, listed in increasing order of Credit Suisse's ranking: