Oil and gas stocks lead record-breaking charge for S&P 500 as winter blast sends energy prices soaring
- Energy stocks were up broadly on Tuesday following a blast of winter weather that hit much of the US.
- The frigid temperatures that swept across the country led to a surge in demand for energy.
- The unprecedented cold has roiled energy markets and has sent spot prices of electricity higher.
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Energy stocks were up broadly on Tuesday as frigid temperatures that swept across the country led to a surge in demand for energy, causing prices to jump.
The historic blast of winter weather has roiled energy markets, sending spot prices of electricity higher. It has also caused some alternative sources of power, such as wind turbines, to freeze, rendering them ineffective.
As cold weather settles over large swathes of the US, demand for heating has increased, testing the limits of the power grid of some states, such as Texas, which does not pay generators to keep capacity in reserve.
According to Bloomberg, weather conditions have also led to drop in oil production of two million barrels per day.
In Dallas, the temperature fell to 4F (-16C) overnight. The Lone Star state's battered infrastructure left four million residents without power for hours. Temperatures also plunged across Oklahoma, Kansas, New Mexico, and Colorado.
WTI crude oil was up 0.74% to $59.91 per barrel as of 10:40AM E.T.
Here is a snapshot of energy sector stocks that were up on Tuesday morning:
- Apache Corp, up 8.5%
- Marathon Oil Corp, up 6.48%
- Occidental Petroleum Corp, up 4.10%
- EOG Resources Inc , up 3.94%
- Pioneer Natural Resources , up 3.91%
- Diamondback Energy Inc , up 3.67%
- Hollyfontier Corp ,up 3.24%
- Exxon Mobile Corp , up 3.15%
- Marathon Petroleum Corp , up 2.08%