Kerr-McGee and Western Gas Benefit from Oil Fears
Iran announced today that the country will begin rationing oil. The stated reason for this was because of budgeting constraints. However Iran’s oil capacity has been hard to estimate in the past and it is possible that the country is simply trying to manipulate oil prices or is actually depleting its reserves.
Both Kerr-McGee (NYSE:KMG) and Western Gas Resources (NYSE:WGR) had stock rallys upon recieving the news. Shares of Kerr-McGee jumped 36.24% to $68.54 and Western Gas’s stock gained 46.00% to $59.74. Both companies are heavily into oil production. Western Gas is invloved in the natural and liquid oil process from exploration, drilling, treatment to transportation. Kerr-McGee produces oil and natural gas as well and also produces industrial chemicals which require the production of heavy minerals as well as forest products.