Here’s Why Denbury Resources’ Stock is Deflating Today
After ripping higher last week, shares of Denbury Resources (NYSE: DNR) have been falling back to Earth on Tuesday. At 10:45 a.m. EST, the stock price had dipped more than 10%. Driving the decline for the petroleum and natural gas exploration and production company was another drop in the price of crude oil, which slipped about 1% and fell below $55 a barrel after the U.S. government released supply data showing another uptick in stockpiles.
According to the U.S. Energy Information Administration, there are 1.9 million more barrels of oil sitting in storage this week than there were a week ago. Not only is this the second straight week that storage levels have risen, but the result was the opposite of the 1 million barrel decline analysts expected. This suggests that there's more supply than demand, which is not what stakeholders in the oil market want to see.
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Source: Fool.com
