Oil continued yesterday's rally into Thursday as crude oil futures touched above $34 a barrel in early morning trading. A number of holdings in Real Money's "Stressed Out" index are going along for the ride while others are tanking.
Shares of Ultra Petroleum (UPL), Encana (ECA). and Chesapeake Energy (CHK) all soared on a Reuters reports that stated Russia plans to speak to Saudi Arabia and other OPEC countries about cutting production to boost prices. Specifically, Reuters reported that Russian Energy Minister, Alexander Novak said Saudi Arabia proposed cutting production by 5% in oil-producing nations.
However, Bloomberg reported that OPEC denied any such talks occurred and the companies have pared down their gains since then.
As of mid-morning trading, shares of Chesapeake Energy were up as high as 5% and shares of Ultra Petroleum and Encana were up 9% and 6%, respectively. Rumors move markets, it seems.
Elsewhere, shares of Freeport-McMoran are down 9% in Thursday morning's trading. The company reported significant losses and announced plans earlier this week to reduce its debt load. Perhaps also adding to the share's decline is a report from Bloomberg that said the company's export license in Indonesia expired without an extension.
For more on Real Money's 20 distressed companies to watch: