Bonanza Creek Energy Inc (NYSE: BCEI)
Bonanza Creek Energy is having an incredible time in the market today. Since the opening bell, the stock has traded well into the green, with the only move we're seeing being upward. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to BCEI ahead.
What We're Seeing From BCEI
As mentioned above, Bonanza Creek Energy is having an incredible start to today's trading session. When the opening bell rang, the stock found itself well into the green. Since then, the stock has been climbing higher and higher with each move. Currently (10:34), BCEI is trading at $1.31 per share after a gain of $0.31 per share (31.00%) thus far today.
Why The Stock Is Headed Upward
As soon as we noticed that BCEI was climbing so high, the CNA Finance team started working to see what was causing the movement. The truth is that it's not the only stock in the oil and energy sector that's moving upward in such a big way. They're all running on highs following yesterday's OPEC deal.
Yesterday, we heard news that OPEC did indeed finalize the oil output cut agreement. Even Iran and Iraq got on board to make this happen. As a result, OPEC will produce 1 million barrels of oil per day less than it has in the past. This is great news for Bonanza Creek Energy, as oil plays a big role in the company's profitability.
What We'll Be Watching For Ahead
While the OPEC deal is great for BCEI and others, it's not the be all/end all for the oil sector. At the end of the day, the supply glut is far larger than the OPEC production cut. Nonetheless, this is a step in the right direction. Moving forward, we'll be keeping a close eye on supply and demand data following the cut. As the news breaks, we'll be sure to bring it to you!
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