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CRUDE GAINS TO PROPEL OIL STOCKS HIGHER AS EARNINGS LOOM (1055 GMT)
WTI crude is set for its longest winning streak (six weeks straight) since 2016, thanks to signs of stabilisation from China helping soother investors' worries about global growth.
With results shortly coming in from Europe's oil and gas giants, JP Morgan analysts reckon shares could continue to rise (the sector is up 14 percent this year) as the oil price buoys earnings.
Crude is being supported by geopolitical tensions in big oil-producing regions, Saudi Arabia's move to a more pro-cyclical outlook, and non-renewal of production waivers in Iran.
"On balance, we believe the risk/reward is positive for EU Oils and remain constructive following our cautious stance in 2018," JPM analysts write.
As you can see below, rising crude prices tend to be a precursor for higher earnings for the oil majors.
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