Seadrill Ltd (NYSE: SDRL)
Seadrill is off to an incredibly strong start in the market today. As soon as the opening bell rang, the stock found itself cleanly in the green. While we haven't seen much movement since then, the stock has stayed well into the gains throughout the session thus far. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to SDRL ahead.
What We're Seeing From SDRL
As mentioned above, Seadrill is having a relatively strong day in the market today. When the opening bell rang, the stock was already well into the green. From there, we haven't seen much by way of excitement. At the moment (10:27), SDRL is trading at $3.57 per share after a gain of $0.18 per share (5.31%) thus far today.
Why The Stock Is Edging Up
As always, as soon as our partners at Trade Ideas informed us of the gains on SDRL, the CNA Finance team started digging 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, this isn't a run that's unique to this stock. Just about every stock associated with the oil and energy sector is seeing gains today.
The reason is relatively simple. At the end of the day, investors are excited about the coming oil production cuts. In fact, the deals from OPEC and non-OPEC members will go into place on Sunday, and will greatly reduce global oil production. As a result, Seadrill and other oil and energy companies are getting a nice boost.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SDRL and others in the oil and energy industry. With the production cuts coming, we're likely to see several opportunities surrounding these stocks. We'll keep a close eye on the news and bring it to you as it breaks!
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