Ocean Rig UDW (NASDAQ: ORIG)
Ocean Rig is having an incredibly hard time in the market today. When the opening bell rang, the stock found itself well into the red. For the short while the market has been open, we’ve seen more negative movement. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to ORIG ahead.
What We’re Seeing From ORIG
As mentioned above, Ocean Rig isn’t having the best of days in the market today. Unfortunately, when the opening bell rang, the stock quickly found itself in the red. Throughout the first half hour or so, the movement hasn’t been very positive. At the moment 10:05, ORIG is trading at $2.36 per share after a loss of $0.15 per share (5.97%) thus far today.
Why The Stock Is Falling
The truth is that, for many, this comes as a surprise. After all, the oil industry was doing well. Now, ORIG and many others in the market are falling in the red. As soon as our partners at Trade Ideas notified us of the movement, the CNA Finance team started digging to see what was causing it.
It didn’t take long to dig up the story. Following the OPEC deal to reduce production, investors expected that oil supplies would start to fall. However, that doesn’t seem to be the case. In fact, recent data out of the United States shows that crude oil stocks are still rising. This, in combination with further concerns about the OPEC deal, is leading to the losses we’re seeing in Ocean Rig and others today.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ORIG and other oil and energy stocks as we see incredible opportunity here. In particular, we’ll be watching supply and demand data ahead as this data tends to be the cause of quite a bit of movement in the sector.
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