Pipeline company Kinetik Holdings is the IBD Stock Of The Day for Thursday as oil and gas prices climbed to three-month highs. Among other oil and natural gas stocks, EQT and Cheniere Energy are near buy zones. Meanwhile, Warren Buffett holding Occidental Petroleum is close to regaining a key technical level.
Oil prices climbed early Thursday to their highest level since October. The Energy Information Administration reported a sixth straight weekly decline in storage levels, although the draw was smaller than expected.
West Texas Intermediate futures rose 2.5% to $73.50 a barrel, after earlier rising to $73.73, the highest level since mid-October. WTI hit a 2024 high near $87 in April.
Crude has been more or less range-bound below the October highs and lows around $67. But Thursday's move sparked by American Petroleum Institute data showed the commodity breaking out of its recent range.
API data released late Tuesday showed crude oil stockpiles fell by 1.442 million barrels in the week through Dec. 27, following a 3.2-million-barrel decline the prior week. Energy Information Administration data released at 11 a.m. Thursday showed crude oil inventories down 1.2 million barrels, though some forecasters expected a 2.8-million drop.
Natural gas futures prices rose 1.8% to $3.70 per million Btu. Thursday's move carried natural gas prices clear of the January 2023 interim high.
Kinetik Holdings Stock
KNTK stock rallied 70% in 2024. It has pulled back and found support at its 50-day moving average, forming a six-week flat base. Shares are offering an early entry as they clear their Dec. 20 high of 57.99.
The current pattern has an official buy point at 62.55.
KNTK stock swung 2.5% higher Thursday, after trading along its 21-day exponential moving average for more than a week.
Among other energy stocks, natural gas producer EQT ticked higher Thursday. Shares of the natural gas producer flashed an early entry on Monday as they moved past prior resistance at 46.31. EQT stock has a 48.02 buy point for a six-week flat base.
LNG stock surged 3.3% Thursday after flashing an early entry last week on a rebound from its 50-day line.
Elsewhere, OXY stock rose 2.5% to retake its 50-day line. However, Occidental Petroleum shares are still trading more than 12% below their 200-day moving average.
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