Shares of oil and gas companies rose as oil futures hit a three-year high because of a drop in inventories.
The U.S. Energy Information Administration reported that crude inventories fell by 7.4 million barrels in the week ended Dec. 29, exceeding analyst expectations on average for a drop of 4.7 million barrels.
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"The price reaction has been overdone," said analysts at research firm JBC Energy. There would be a significant market impact, if the Trump administration reimposes sanctions, the analysts added.
Energy investment firm NGP said it staked energy startup Luxe Energy, which recently sold out of acreage in West Texas, with $820 million to build another oil explorer.
Rob Curran, email@example.com
(END) Dow Jones Newswires
January 04, 2018 16:22 ET (21:22 GMT)