Why Occidental Petroleum, Range Resources, and Transocean All Plunged as Much as 10% Today
The shares of energy industry players Occidental Petroleum (NYSE: OXY), Range Resources (NYSE: RRC), and Transocean (NYSE: RIG) fell as much as 10.5%, 13.5%, and 12%, respectively on May 9. By roughly 1:30 p.m. ET each of the names here was still hovering close to its lows for the day.
The S&P 500 index fell sharply today, with the market seemingly in a prolonged downdraft. That clearly had an impact on investor sentiment. But, for Occidental, Range, and Transocean, the bigger driver was likely the steep declines in the price of oil and natural gas. By roughly 1:30 p.m. ET these two vital energy sources were lower in the mid- to high-single digits. That's a pretty notable move even for these typically volatile commodities. For Occidental and Range the oil and natural gas declines are tied directly to their top and bottom lines, given that Occidental is a large oil driller and Range is a large natural gas producer.
Image source: Getty Images.
Source Fool.com
