Global oil prices rebounded Wednesday after Goldman Sachs dismissed fears surrounding a sharp increase in Saudi Arabian output in February and noted that OPEC's adherence to its self-imposed production cuts was on track.
Prices were given a further boost when official figures from the Energy Information Agency showed U.S. crude stockpiles fell by 237,000 barrels last week, the second consecutive surprise fall. The draw was narrower than the 531,000-barrel draw the American Petroleum Institute reported late Tuesday.
Energy stocks followed suit as the Energy Select Sector SPDR ETF (XLE) that follows the sector rose 1.3% by midday.
Trade publication Upstream Online reported last week that Borr Drilling, 'is understood to be close to finalising a deal to acquire the jack-up fleet of Transocean as the cash-rich rig start-up capitalises on low asset prices amid a drilling market slump.'
According to the report, the deal would include all Transocean's10 operating jackup rigs, plus five rigs under construction.
The report said the deal is expected to be worth about $1.20 billion, or, 'an average price of only $80 million per rig.'
Weatherford shares rose 3.4% on Wednesday as the follow-on positive sentiment about the firm's new CEO, former Halliburton CFO Mark McOllum.
Bruce Kamich, a technical analyst for Real Money, The Street's premium site for active traders, said on Wednesday, "Weatherford dipped 5.38% yesterday, and maybe some fundamental analysts are looking for some "news" to explain the decline. As a technical analyst, I don't need to do that. To me, WFT just pulled back to filled an upside gap earlier in the month. Some gaps get filled, and some do not. The fundamental analysts will ignore the fact that when WFT soared to over $7 it was on heavy volume of over 100 million shares. Yesterday, when WFT pulled back, is was on only 40 million shares. Technicians like when a stock rallies on strong volume and pulls back on lighter volume as it tells us that the bulk of the people who bought WFT in the rally did not bail out on this decline."