Worries abated over another fast surge in the price of oil, but options traders are still betting that turmoil in the Middle East and North Africa will continue to ripple through the energy sector.
Traders accumulated bullish positions in companies that focus on oil-and-gas production, transport or exploration, like El Paso Corp. (NYSE:EP), Range Resources Corp. (NYSE:RRC) and Williams Cos. (NYSE:WMB) Analysts said energy bulls are looking past oil's stabilization to around $98 a barrel and Saudi Arabia's supply assurances.
"The view is that the spike in crude oil will help the industry over time, [that] demand for things like drilling or oil-related services will remain strong," WhatsTrading.com analyst Frederic Ruffy said.
The activity came after similar moves in options to buy shares in Brazil's Petrobras (NYSE:PBR), GMX Resources Inc. (NYSE:GMXR), Quicksilver Resources Inc. (NYSE:KWK), Petrohawk Energy Corp. (NYSE:HK) and Kodiak Oil & Gas Corp. (AMEX:KOG) earlier last week.
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