Why Devon Energy Stock Rallied 14% at the Open Today
Shares of U.S. exploration and production company Devon Energy (NYSE: DVN) rose a quick 14% in early trading on June 1. An hour into the trading day the stock was still up around 11%. There were two notable factors behind the move today, one industry-focused and the other specific to Devon.
From a big-picture perspective oil prices were on the rise this morning, something that tends to lead to price gains throughout the energy sector. Positive news out of OPEC as it meets to decide its production levels was a key reason for investor optimism. Notably, the excess oil put into storage during the worst of the coronavirus pandemic downturn is, according to OPEC, nearly worked off. That, in turn, should allow the group to raise production targets without causing a fresh glut of this vital global energy source. That is, indeed, good news and investors are probably right to be upbeat. Like other energy names, Devon benefits from higher energy prices.
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Source Fool.com
