Why All Offshore Drilling Stocks Rose Last Week
Offshore drilling stocks
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Below are the stock returns of the major offshore drilling companies on December 1, 2017, compared with their prices one week ago:
- Seadrill (SDRL) fell 12.3%.
- Transocean (RIG) rose 7.5%.
- Noble (NE) rose 10%.
- Diamond Offshore (DO) rose 4.5%.
- Rowan (RDC) rose 7.1%.
- Ensco (ESV) rose 5.8%.
The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, rose 1.9% during the same week.
The US offshore rig count for the week ended December 1, 2017, was 20—two fewer than during the previous week. The rig count was also lower by two rigs compared with the same period in 2016.
The total US rig count (oil and natural gas rigs) came to 929 for the week ended December 1, 2017—six higher than the previous week and significantly higher than the 332 rigs reported for the same period last year. The total US oil rigs recorded came to 749—up by two from the previous week.
In the next two parts of this three-part series, we’ll discuss the details of why offshore drilling stocks rallied last week as well as why next week will be crucial for Seadrill.