Seadrill Ltd (NYSE: SDRL) is having an overwhelmingly strong start to the trading session this morning, and for good reason. Ultimately the company is benefiting from the fact that oil prices are flying. Of course, higher oil prices mean stronger revenue and the potential for profit at SDRL. So, it’s no surprise that excited investors are sending the stock screaming for the top. Today, we’ll talk about:
- What’s going on in the oil sector;
- what we’re seeing from SDRL as a result; and
- what we’ll be watching for ahead.
SDRL Heads For The Top With Oil Prices
As mentioned above, Seadrill is having an incredibly strong start to the trading session this morning as the price of oil climbs. At the end of the day, the market seems to be worried about the Iranian sanctions and how they will affect the availability of oil. As a result, oil is flying, climbing past the $80 per barrel mark, and looking like it wants to go higher.
Of course, this is great news for SDRL. After all, the company is focused in the oil and gas sector. So, as the price of oil increases, the potential revenue the company can generate from operations climbs as well. Not to mention, higher oil prices will likely lead to better metrics when it comes to net income.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. While Seadrill did not release any news that was specific to the company, the news surrounding oil prices directly reflects on the company. So, it’s no surprise that excited investors are sending the stock screaming for the top. At the moment (10:20), SDRL is trading at $0.65 per share after a gain of $0.19 per share (39.65%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SDRL and others in the oil and gas space. In particular, we’ll be watching the situation surrounding sanctions on Iran as well as the rest of the oil market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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