After languishing in energy stock hell on the market for this past week (in which time Exxon – XOM – actually briefly dipped below $90 a share), Big Oil seems to be getting a break. While it seemed that the rising oil prices might actually result in lower profits (and hence lower stock prices) for Big Oil companies, gasoline prices are finally catching up, ensuring that Big Oil will remain profitable (as if there were ever any real doubts).

Photo: Euen Pics, Creative Commons, Flickr

Another big boost to Big Oil stocks is the infusion of cash into Tesoro (TSO). Tracinda Corp., a company owned by billionaire Kirk Kerkorian, made an offer to purchase 28.75 million shares of Tesoro. Does he know something many of us don't? MarketWatch reports:

Tracinda has chosen to invest in Tesoro because Tracinda believes that the company is well positioned within the industry and has a management team that is effectively executing its strategic plan. Tracinda looks forward to participating in the growth of the company alongside the other shareholders.

Tesoro is making moves to keep costs low buy buying cheaper crude and and possibly cutting back production. If other Big Oil companies follow suit, the energy stock sector is likely to continue gaining. And with Tesoro fairly inexpensive (less than $63 a share right now) it might be a bargain – especially if you agree with Kekorian's assessment of the situation.

Disclosure: I do not own any oil company stock.

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