Antero Resources, Permian Resources, Magnolia Oil & Gas, California Resources, and Talos Energy Shares Are Soaring, What You Need To Know
What Happened?
A number of stocks jumped in the afternoon session after renewed fighting across the Middle East, and a larger-than-expected drop in U.S. crude stockpiles reinforced concerns over oil supply.
Crude oil futures jumped more than 6%—snapping a three-day losing streak—as renewed fighting across the Middle East and a larger-than-expected drop in U.S. crude stockpiles reinforced concerns over a global supply squeeze.
The primary driver of the rally was the collapse of a four-day truce, marked by escalating hostilities between Iran and the U.S. Iran carried out a missile attack on a U.S. base and fired on tankers in the Strait of Hormuz, a critical chokepoint for global energy supplies. In response, U.S. and Saudi Arabian forces launched retaliatory strikes on Iran-aligned militias in Iraq. These developments revived fears of a wider regional conflict that could severely disrupt the flow of oil, sending Brent crude futures above $90 a barrel and West Texas Intermediate (WTI) climbing past $84 a barrel.
Adding fundamental support to this geopolitical rally, a report from the American Petroleum Institute (API) highlighted continued tightness in the domestic market. The API estimated that commercial crude oil inventories in the United States fell by 3.3 million barrels in the week ending July 24. A decrease in these stockpiles typically signals that demand is outpacing supply, putting upward pressure on prices. If confirmed by official government data, this draw would leave U.S. crude stockpiles at their lowest level for this time of year since 2018, providing a powerful dual tailwind for the energy sector alongside the Middle East tensions.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Upstream Natural Gas E&P company Antero Resources (NYSE:AR) jumped 4.2%. Is now the time to buy Antero Resources? Access our full analysis report here, it’s free.
- U.S. Shale E&P company Permian Resources (NYSE:PR) jumped 4.9%. Is now the time to buy Permian Resources? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Magnolia Oil & Gas (NYSE:MGY) jumped 6%. Is now the time to buy Magnolia Oil & Gas? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company California Resources (NYSE:CRC) jumped 2.5%. Is now the time to buy California Resources? Access our full analysis report here, it’s free.
- Mixed or Offshore Upstream E&P company Talos Energy (NYSE:TALO) jumped 3%. Is now the time to buy Talos Energy? Access our full analysis report here, it’s free.
Zooming In On Magnolia Oil & Gas (MGY)
Magnolia Oil & Gas’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.2% on the news that oil prices surged following attacks on commercial ships near the Strait of Hormuz. Multiple tankers were reportedly struck by projectiles in the critical shipping lane, a key passageway for global oil transport. The incident immediately pushed crude oil prices higher, with the August contract rising to over $72 a barrel. This development adds a layer of uncertainty for investors, as sustained higher oil prices can fuel inflation. Simultaneously, a drone attack on Russia's largest refinery signaled a significant expansion in the Ukraine conflict, further pressuring prices upward. Higher oil prices typically translate to increased revenues and profitability for oil and gas companies, boosting investor sentiment across the sector.
Magnolia Oil & Gas is up 10.1% since the beginning of the year, but at $24.75 per share, it is still trading 23.5% below its 52-week high of $32.36 from March 2026. Investors who bought $1,000 worth of Magnolia Oil & Gas’s shares 5 years ago would now be looking at an investment worth $1,750.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.