Why Transocean Stock Rallied 13.5% at the Open Today
Shares of offshore energy services provider Transocean (NYSE: RIG) rose a dramatic 13.5% in early trading on Nov. 18. Although those gains didn't hold for long, the shares of this energy industry player were still up around 9% at 11 a.m. EST. There's an easy answer for the price action, and then there's a more complex view of things.
The simple logic here is that oil prices rose in early trading and then started to cool off. So it shouldn't be a shock that this energy services company's stock followed along for the ride. But that's just a surface view, since Transocean doesn't actually drill for oil. That's what its customers do -- it just helps them get the job done with a focus on the offshore sector.
Image source: Getty Images.
Source Fool.com
