Market Overview

Saudi Arabia Oil Minister: Price Of Oil Is 'Up To Allah'

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According to comments made by Saudi Arabian oil minister Ali Al-Naimi on Tuesday, the price of oil isn't controlled by his country, nor is it controlled by OPEC. Rather, the minister stated "no one can set the price of oil – it's up to Allah."

Speaking to CNBC, Al-Naimi added that only Allah knows in which direction the commodity is heading. He also noted that he is "not worried at all" if Iranian crude would come back onto the market should international sanctions on the country be removed as part of a nuclear deal.

Crude oil futures were staging a "monster rally," trading higher by more than $2.00 during Tuesday's trading session. The commodity traded at $61.10, marking the first time it has traded in the $60 handle since December.

Oil investors and traders appeared to be bullish on oil related names on Tuesday, especially drilling related companies. Shares of Seadrill Ltd (NYSE: SDRL) surged more than 10 percent while shares of Pacific Drilling SA (NYSE: PACD) were also higher by 10 percent. Investors and traders were also buying shares of Diamond Offshore Drilling Inc (NYSE: DO) as shares were higher by 6 percent.

Meanwhile, shares of Transocean LTD (NYSE: RIG) were trading higher by nearly 7 percent, ENSCO PLC (NYSE: ESV) was trading higher by just over 5 percent, Rowan Companies PLC (NYSE: RDC) shares were higher by just under 5 percent.

Shares of small-cap Vantage Drilling Company (NYSE: VTG) were trading higher by 3.65 percent while shares of Seadrill Partners LLC (NYSE: SDLP) were underperforming its peers, trading higher by less than 3 percent.

 

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