Transocean Ltd (NYSE: RIG)
Transocean is having a relatively strong day in the market today. When the opening bell rang, the stock quickly found itself in the green. From there, we’ve seen some upward and some downward movement, but overall, it’s shaping up to be a pretty good day for the stock. Below, we’ll talk about what we’re seeing, why, and what investors should be watching for with regard to RIG ahead.
What We’re Seeing From RIG
As mentioned above, today is shaping up to be a strong day for Transocean. When the market opened and the trading started, the stock was already well into the green. From there, we’ve seen ups and downs. Honestly, more downs than up, but the stock is still showing impressive gains on the day. Currently (12:17), RIG is trading at $15.12 per share after a gain of $0.38 per share or 2.58% thus far today.
Why The Stock Is Headed Up
At the end of the day, RIG isn’t the only stock in the oil and energy sector that’s seeing strong gains in the market today. In fact, they weren’t even on my watch list. They came up when I noticed that Seadrill was doing well in the market today and I decided to dig deeper. Nonetheless, soon it became clear that the movement wasn’t just SDRL, it wasn’t just RIG, it was industry wide. So, what’s happening in the oil industry now?
Well, it’s not what’s happening as much as what’s evolving. The OPEC and non OPEC oil agreements happened about a month ago at this point. However, they are evolving to become successful. In fact, reports have surfaced that Kuwait and Oman, two important members of OPEC, have already cut production in a big way.
With these reports surfacing, the value of oil is climbing to highs. In fact, it’s as high as it’s been in 18 months at this point. Of course, Transocean makes its money in the oil sector. So, as oil climbs in value, the stock will benefit.
What To Watch For Ahead
Moving forward, if you’re going to trade or invest in RIG, it’s going to be overwhelmingly important to watch supply and demand data surrounding oil. At the end of the day, the company is only as strong as the product it sells, and there’s a ton going on in the oil industry at the moment. Keep a close eye on factors that will cause movement in the price of oil and you will have a good idea where RIG is headed too!
What Do You Think?
Where do you think RIG is headed and why? Join the discussion in the comments below!