Why Transocean Was Falling Today

Shares of oil services company Transocean (NYSE: RIG) were plunging today, down 7.8% as of 1:17 p.m. ET.

Transocean's financial results are dependent on sales of offshore drilling rigs, which is dependent on new drilling, which is dependent on oil prices. While oil prices are affected by a variety of factors, today saw rising U.S. bond rates, which tend to strengthen the dollar against other currencies. Since oil is priced in dollars, oil prices were falling today in response.

Additionally, oil traders may be worried about the broader economy ahead of tomorrow's Federal Reserve interest rate decision. A potential recession would also be bad for oil prices.

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Source Fool.com