Marathon Oil Corporation (NYSE: MRO) like most others in the oil and energy space, is having an incredibly strong day in the market today. The gains are ultimately the result of moves made by Donald Trump that are sending the value of oil through the roof. Of course, that’s great news for MRO and others in the industry. Today, we’ll talk about:
- What Trump did to increase the price of oil;
- what we’re seeing from MRO as a result;
- and what we’ll be watching for ahead.
MRO Flies On Trump Moves
As mentioned above, Marathon Oil is having an incredibly strong start to the trading session this morning as news out of the Trump Administration lifts the price of oil. In fact, in an announcement, President Donald Trump has threatened to pull out of the deal between Iran and other world powers.
Iran just so happens to be the third largest member in OPEC, and if they don’t abide by deadlines set in place surrounding the nuclear deal with the country, the United States will be placing sanctions back on the country. Ultimately, Iran has 5 days to comply with requests or the deadline of May 12th will hit, bringing sanctions back to the region.
While geopolitical concerns aren’t always good, in this case, they’re great for MRO. After all, as a result of the threats made by the Trump Administration, oil is trading above $70 per barrel. That’s the first time we’ve seen that since November 2014, almost 4 year s ago. With oil being more valuable, MRO has the ability to earn more profits from its operations.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, with the price of oil rising as the result of Trump’s move, Marathon Oil can now generate a larger profit. So, it’s no surprise that excited investors are sending the stock screaming for the top. At the moment (11:23), MRO is trading at $20.68 per share after a gain of $0.95 per share or 4.82% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MRO. In particular, we’re interested in following the story surrounding the Iranian Nuclear Deal and whether or not Iran will comply. Of course, if they don’t MRO and others in the industry could fly as exports from Iran will be blocked to a large portion of the world, cutting out a large supply of the world’s oil. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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