Rex Energy Corporation (NASDAQ: REXX)
Rex Energy looked like it was going to have a rough day in the market early on today. While the stock was well into the green when the opening bell rang, it quickly made a run for the red. That lasted about a half hour before it recovered in a big way. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching with regard to REXX ahead.
What We're Seeing From REXX
As mentioned above, things didn't look good for Rex Energy early on today. Sure, the stock started in the green, but what happened after was concerning. For the first half hour or so of the trading session, the stock fell dramatically, eventually making it to the red. Nonetheless, since then, we've seen incredible gains. Currently (11:13), REXX is trading at $0.55 per share after a gain of $0.05 per share (9.54%) thus far today.
Why The Stock Is Edging Upward
As soon as our partners at Benzinga Pro informed us of the gains REXX was seeing, the CNA Finance team started digging to see exactly what was causing the movement. It didn't take long to dig up what was going on. Ultimately, this wasn't movement that was specific to Rex energy - it's actually systemic across the entire oil and energy sector.
Early this morning, the oil and energy sector as a whole had a rough start. This was the result of oil supply data out of the United States showing an increase. However, as the day progressed, investors seemed to be moving toward thinking about the OPEC deal, the non-OPEC deal, and what these deals will do for oil moving forward. As a result, we're seeing gains.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching REXX and the rest of the oil sector like a hawk. At the end of the day, there's good news in that OPEC and non-OPEC nations are working to reduce production. However, these production cuts are a bit smaller than the overall glut. As a result, it will be incredibly important to watch supply and demand data ahead. Nonetheless, we'll keep a close eye on the story and bring you the news as it breaks!
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