Oil shares jumped in premarket trading on Monday.
US Energy up 14%; Indonesia Energy up 11%; APA up 3%; Occidental, Halliburton, Chevron, SLB, Exxon Mobil up 2%.
US stock futures tumbled at the start of the week as oil prices surged past the $100-a-barrel mark. The sell-off followed a bruising stretch for equities, with the Dow closing out its worst weekly decline in nearly a year.
Energy markets were a major driver of the moves. Crude prices spiked late Sunday as the conflict in Iran spurred countries to cut output, while the Strait of Hormuz shipping corridor remained shuttered. Kuwait confirmed production cuts but did not specify the scale, while output in Iraq is reported to have plunged about 70%.
US benchmark West Texas Intermediate (CL=F) crude oil surged roughly 13% to more than $103 a barrel. Global benchmark Brent (BZ=F) crude climbed about 16% to above $107.
Looking to domestic economic reports, investors will be watching closely for Wednesday's Consumer Price Index and Friday's Personal Consumption Expenditures index readings, though both won't capture the effect of oil's dramatic recent surge on price pressures just yet.
On the corporate front, earnings season continues with results from Hewlett Packard Enterprise (HPE) expected after Monday’s closing bell. Reports from Oracle (ORCL), Adobe (ADBE), and Dick's Sporting Goods (DKS) are scheduled in the week ahead.
