Stone Energy Corporation (NYSE: SGY)
Stone Energy is having an incredible day in the market today. When the opening bell rang, the stock found itself well into the green. Since then, we’ve seen gains followed by more gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to SGY ahead.
What We’re Seeing From SGY
As mentioned above, Stone Energy Corporation is having an incredible time in the market today. The stock started the day well into the green and has only grown since the opening bell. At the moment (12:39), SGY is trading at $7.35 per share after a gain of $2.43 per share (49.37%) thus far today.
Why The Stock Is Climbing
The truth is that SGY isn’t alone in the gains we’re seeing today. In fact, the oil and energy sector is exploding with good news today. The gains are the result of an oil output cut announcement that was made yesterday. Of course, with the supply glut in mind, any output cut is good news for the energy sector as a whole.
Yesterday, news came out with regard to the OPEC oil output cut agreement. While the agreement had been under fire, yesterday we learned that it would actually come to fruition. In fact, all OPEC members have agreed and finalized the deal, cutting production by around a million barrels per day. That’s great news for Stone Energy and any other company that makes its money in the oil and energy space.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on Stone Energy and several others in the energy sector. We believe that further supply and demand news may dampen the run ahead, given that the glut is far larger than 1 million barrels per day. Nonetheless, this is a step in the right direction. We’ll keep an eye on the news and bring it to you as it breaks!
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