Vanguard Natural Resources, LLC Unit (NASDAQ: VNR)
Vanguard Natural Resources is having yet another incredible day in the market today. This is following up on the gains that we’ve seen on the stock over the past several trading sessions. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to VNR ahead.
What We’re Seeing From VNR
As mentioned above, Vanguard Natural Resources is having an incredibly strong day in the market today. With the opening bell, the stock found itself in the green, and it has continued up throughout the day. This is following up on gains that we’ve seen from the stock in recent trading sessions. At the moment (10:53), VNR is trading at $1.18 per share after a gain of $0.27 per share (29.76%) thus far today.
Why The Stock Is Gaining
As usual, when the CNA Finance team saw that VNR was heading upward in the market, we started to do some digging to see what we could uncover as the cause. At the end of the day, we were unable to find anything fundamental that has been newly released. What we’re seeing in the market today is a follow up on gains that started on Wednesday with OPEC announcing an oil production cut.
At the end of the day, Vanguard Natural Resources makes more profit when the value of oil is up. With OPEC agreeing to cut production of the commodity, the law of supply and demand dictates that the price must rise. That’s great for VNR and its investors.
What We’ll Be Watching For Ahead
Moving forward, we’ll be keeping a close eye on VNR and others in the oil and energy sector. We’ll also be watching closely for a bubble. While these stocks should be seeing gains, the gains are likely to get out of control. This could lead to a big drop down the line. We’ll also be keeping an eye on ongoing supply and demand data to see just how much of an effect the OPEC output cut has on the commodity. Nonetheless, we’ll keep our eyes peeled and update you as news becomes available.
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