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Energy stocks surge, as heightened Middle East tensions fuel oil price rally

Tomi Kilgore

Energy stocks traded broadly higher Thursday, as increased tension in the Middle East fueled a surge in oil prices. The SPDR Energy Select Sector ETF jumped 1.8% in morning trading, with all 29 of its equity components trading higher, while the Dow Jones Industrial Average hiked up 215 points, or 0.8%. Among the more-active members, shares of Halliburton Co. rose 3.0%, Marathon Oil Corp. gained 3.2%, Schlumberger Ltd. tacked on 3.1%, Exxon Mobil Corp. advanced 1.7% and Chevron Corp. added 1.1%. Elsewhere, Chesapeake Energy Corp.'s stock powered up 4.4% on NYSE-leading volume of 6.3 million shares. August crude oil futures rallied 4.5%, after news that Iran's Revolutionary Guard said it shot down a U.S. drone. Also helping boost prices, data out Wednesday showed that U.S. crude supplies fell, and a firmer date for an Organization of the Petroleum Exporting Countries (OPEC) meeting was in place to review pledged production limits.