Transocean (RIG) Stock Tumbles on Falling Oil Prices
NEW YORK (TheStreet) -- Transocean (RIG) - Get Report stock is declining by 6.9% to $9.98 in afternoon trading on Monday, as shares of the Swiss offshore drilling contractor are pressured by weaker oil prices.
WTI crude is down by 2.89% to $43.37 per barrel on the New York Mercantile Exchange, while Brent crude is falling by 3.95% to $43.58 per barrel on the Intercontinental Exchange this afternoon.
Oil prices are reversing last week's gains, which were triggered by wildfires in Canada that cut output from the Alberta oil sands region, Bloomberg reports.
"Without any damage, then the barrels lost are inconsequential, because we're still at all-time record highs for U.S. storage," Michael Hiley, LPS Partners' head of over-the-counter energy trading, told Bloomberg.
In the U.S., inventories at the Cushing, OK delivery hub increased by 1.4 million barrels, Genscape data showed, according to Reuters.
Separately, Transocean has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's weaknesses, including generally disappointing stock performance.
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.
