Ocean Rig UDW (NASDAQ: ORIG)
Ocean Rig is looking like it’s going to have yet another strong day in the market. This follows up on the strong gains that we saw on the stock yesterday. While the market isn’t open quite yet, the stock is already headed upward. Below, we’ll talk about what we’re seeing in the market, why, and what we’ll be watching for with regard to ORIG ahead.
What We’re Seeing From ORIG
As mentioned above, Ocean Rig has had a strong time in the market as of late. In fact, yesterday alone, the stock gained 7.45% to close the day off at $1.73 per share. Today, it seems as though the stock is likely to move even higher. After all, the pre-market activity is promising. At the moment (4:41), ORIG is trading at $1.80 per share after a gain of $0.07 per share (4.05%) thus far in the pre-market.
Why The Stock Is Gaining
As always, as soon as we saw the signal through one of our trading tools, the CNA Finance team went to work to see exactly what was causing the movement. In this particular case, it didn’t take long to uncover the story. At the end of the day, ORIG isn’t the only stock in the oil and energy sector that’s seeing gains. The truth is we’re seeing green across the sector.
The reason for this is relatively simple. For the past month or so, we’ve been hearing about oil production cuts – one from OPEC and one from non-OPEC member nations. These production cuts will start on the first of the year (this coming Sunday). As a result, investors are excited, sending oil and energy stocks like Ocean Rig through the roof.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ORIG and others in the oil and energy sector. In particular, we’ll be watching for supply and demand data following the production cuts. While the cuts are exciting, many argue that they aren’t large enough to solve the problems the industry is facing. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]