Transocean (RIG) Stock Slides Alongside Oil Prices
NEW YORK (TheStreet) -- Shares of Transocean (RIG) - Get Report are sliding 4.44% to $9.15 Thursday afternoon as oil prices fall on a stronger dollar.
Crude oil (WTI) is slumping 0.17% to $48.11 per barrel this afternoon, and Brent crude is down 0.39% to $48.74 per barrel.
Oil prices are lower this afternoon after the dollar strengthened on a higher likelihood that the Federal Reserve will soon hike interest rates.
A stronger greenback makes dollar-denominated commodities such as oil more expensive to foreign buyers, which could negatively impact demand.
"We feel that the adjusted Fed stance is capable of extracting about $2 a barrel from potential WTI and Brent highs," Jim Ritterbusch of oil consultancy Ritterbusch & Associates told Reuters.
But oil prices reversed some of the session's earlier losses after Nigeria's largest crude oil terminal reportedly closed due to militants' threats.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Transocean's weaknesses include its generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: RIG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
