NEW YORK (TheStreet) -- Shares of Transocean LTD. (RIG) are higher by 4.43% to $16.97 in early afternoon trading on Tuesday, as the energy sector gains, helped in part by the Spanish energy company Repsol SA's $8.3 billion agreement to acquire Talisman Energy (TLM) .
Additionally, light, sweet Brent crude for January delivery rose as high as 1.5% to $56.87 in early afternoon trading on the New York Mercantile Exchange on Tuesday, after hitting its lowest level in over five years, MarketWatch reports.
"We are starting to see a bottom here, and we are getting some value buying," an oil consultant with Frost & Sullivan told MarketWatch.
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The buying is likely coming from physical oil buyers, like refineries, which can store the oil purchased at the reduced prices. However, this kind of buying can come in waves and may not be enough to sustain a rally in prices, the consultant added.
Earlier in the day oil prices had dropped following the interest rate increase in Russia, and a continual slowdown in China's manufacturing sector, MarketWatch noted.
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Separately, TheStreet Ratings team rates TRANSOCEAN LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: