Offshore drilling stocks fell along with oil prices ahead of OPEC ’s meeting scheduled for June 22. In Week 24 (ended June 15), oil prices fell 2.7%, and all offshore drillers traded in the red.
Saudi Arabia and Russia have indicated the possibility of increasing their oil production levels ahead of OPEC’s crucial meeting, which has dragged down oil prices.
Here’s how offshore drilling stocks were trading in Week 24:
- Seadrill Partners (SDLP): fell 1.9%
- Seadrill (SDRL): fell 1.2%
- Transocean (RIG): fell 8%
- Noble (NE): fell 12.2%
- Diamond Offshore Drilling (DO): fell 5.3%
- Rowan Companies (RDC): fell 10.3%
- Ensco (ESV): fell 12.6%
The VanEck Vectors Oil Services ETF (OIH), which has 22.3% of its holdings in oil and drilling stocks, fell 4.7%.
Even after offshore drilling stocks fell in Week 24, Seadrill has a significant 81.5% year-to-date return as of June 15. Transocean and Noble also have positive year-to-date returns of 11.6% and 14.6%, respectively. On the other hand, Seadrill Partners, Diamond Offshore, Ensco, and Rowan Companies have year-to-date returns of -13.1%, -0.59%, -1%, and -6.5%, respectively.
In the next part of this series, we’ll see where the offshore rig count is headed in Week 24, followed by analysts’ revised target prices and recommendations for offshore drilling stocks last week.
Correction: An earlier version of this article appeared under the erroneous title “All Crude Oil Tanker Stocks Fell in Week 24.”