Thursday, 26 May 2016

RIG, SDRL - unable to hold early gains

With WTIC oil flirting with the $50 threshold, energy stocks opened broadly higher, but it was notable that many saw rather strong daily reversals. The oil gas drillers of Transocean (RIG), and Seadrill (SDRL), settled lower by a significant -1.9% and -7.8% respectively.

RIG, daily

SDRL, daily


Little to add from a few days ago.

Price action remains broadly weak. This morning was just another classic instance of sig' opening gains, but then the sellers reappeared.

Of the two companies, SDRL is more vulnerable, and I would be surprised if it survives into year end.