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What: Shares of oil and natural gas service provider Basic Energy Services
So what: The company did announce an earnings release date of Oct. 20 this morning, but I doubt that had much to do with the move. Instead, Basic Energy Services and other oil-related stocks have piggy-backed on the incredible 4.4% jump in the price of oil.
Now what: As the price of oil and natural gas fall, as they have recently, the cost of drilling in the U.S. and other locations becomes less economical, affecting service providers. So it shouldn’t be a surprise that Basic Energy's shares have almost directly followed the price of oil down in recent months. Today's rally is just part riding that wave, and if oil continues to rise, then I would expect shares to continue to move upward as well.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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