Rex Energy Corporation (NASDAQ: REXX)
Rex Energy Corporation is having an incredibly strong start to the trading session today. Since the opening bell, the stock has been trading well into the green and looks to be holding onto its gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to REXX ahead.
What We’re Seeing From The Stock
As mentioned above, Rex Energy Corporation is having a relatively strong day in the market. After starting the day well into the green, the stock continued on a strong path for the first hour. Now, it seems to be falling from highs, but well ahead of losses. At the moment (10:40), REXX is trading at $0.43 per share after a gain of $0.05 per share (12.02%) thus far today.
Why The Stock Is Climbing
REXX is a company that is heavily focused within the oil and energy sector. So, naturally, anything that causes movement in the value of oil will likely cause movement in the value of the stock. Today, there’s big news breaking on the oil front.
It seems as though OPEC has finally come to an agreement over oil production. While an agreement was announced months ago, that was more of an agreement to agree later on. Now, the deal is being finalized, cutting about 1 million barrels of oil from OPEC output per day. This will be a great thing for Rex Energy Corporation and others in the sector, as it will likely cause the price of oil to climb.
What We’ll Be Watching For Ahead
While the OPEC deal is great for REXX and others, oil isn’t out of the woods yet. Even with the cut, supply will likely largely outweigh demand for some time. So, we’ll be keeping an eye on supply and demand surrounding oil for clues as to where the stock is headed next. Nonetheless, we’ll watch the story closely and bring the news to you as it breaks!
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[Image Courtesy of Public Domain Pictures]