Why Oceaneering International Stock Rose as Much as 10% Today

Shares of energy services company Oceaneering International (NYSE: OII) rose steadily through the day, briefly peaking above 10% before settling to a 4.3% gain on Thursday. There was no news out of the company, but some key oil sector trends coupled with an updated price target from Bank of America Global Research provided ample reason for investors to get excited.

Oceaneering International provides services, such as drilling and completion, to offshore oil drillers. The recent downturn in oil prices has been particularly brutal because the supply/demand imbalance today is being driven by both sides of the equation. Excess supply has been building for years because of U.S. onshore drilling growth, but was compounded by a recent price spat between OPEC and Russia. They've since resolved the dispute, but it led to increased supply right when the COVID-19 pandemic was causing countries around the world to shut down. That resulted in a plunge in demand pushing oil prices to historic lows.

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Source Fool.com