Resolute Energy Corp (NYSE: REN)
Resolute Energy is having an incredible day in the market today. This is adding to the gains that we’ve seen from the stock recently. With recent production cuts and positive inventory data out of the United States, many believe that this run will last. Below, we’ll talk about recent news surrounding REN, how the stock is reacting to the news, and what we should be watching for ahead.
What We’re Seeing In The News Surrounding REN
As mentioned above, there has been quite a bit of news lately that helps Resolute Energy. At the end of the day Resolute Energy is a company that makes its money in the oil and energy sector. Therefore, anything that benefits the price of oil will ultimately benefit the company in a big way. Well, we’re seeing quite a bit of news surrounding oil at the moment. In fact, there are three big stories that broke recently…
- OPEC Deal – First and foremost, a couple of weeks ago, we heard some big news from OPEC, the world’s leading producers of oil. That is that the agreement they had come to was finally finalized. Perhaps more importantly, the oil cartel cut more oil from daily production than originally expected. At the end of the day, the agreement cut 1.2 million barrels per day from production. That’s huge news! After all, lower production means oil prices will likely rise, leading to gains for REN.
- Non-OPEC Deal – Last week, we got more good news with regard to oil. That news was that the OPEC agreement wasn’t the oil agreement that was going to lead to declining production. In fact, Russia, Mexico, and other non-OPEC member nations had finalized an agreement that would cut an additional 550,000+ barrels per day from global production. Once again, declining production is a great thing for REN and others that make their money in the industry.
- US Inventory – Finally, earlier this week, the United States Energy Information Administration released a report that showed that oil inventories in the United States are falling at a faster than expected rate. In fact, the figure fell by about double what experts expected.
What We’re Seeing From The Stock Today
As mentioned above, Resolute Energy is having an incredible day in the market today. As soon as the session opened, we started to see gains on the stock. From there, we’ve seen more and more upward movement, bringing the stock further into the profits. Currently (1:00), REN is trading at $39.31 per share after a gain of $2.17 per share or 5.84% thus far today.
What Investors Should Be Watching Ahead
At the moment, things are looking great for Resolute Energy and others in the oil and energy sector. However, as we all know, anything can happen in the world of investing. With that said, moving forward, investors should continue to pay attention to supply and demand data. As this data continues to balance, gains are likely to continue. However, if the trend changes, we could expect to see large declines.
What Do You Think?
Where do you think REN is headed moving forward? Join the discussion in the comments below!