Why RigNet Stock Is Sinking Again Today
Shares of RigNet (NASDAQ: RNET) plunged as much as 12% by 3:15 p.m. EDT on Wednesday. The main factor weighing on the offshore communications and software company's stock was sinking oil prices. It's the company's second big sell-off this week.
Crude prices sold off Wednesday, with the global benchmark price, Brent, tumbling 4.6% to around $56 per barrel. The main issue was an unexpected rise in U.S. oil storage levels. That prompted fears that demand isn't growing fast enough to offset rising production in the country. That slump in the oil market weighed on shares of RigNet. The market is worried that oil companies might reduce their investments in offshore drilling projects, which would impact demand for its services.
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