The NYT reports that the White House is about to lift the ban on deepwater drilling.
“The Obama administration on Tuesday plans to announce that it is lifting the moratorium on deep-water oil drilling, after putting in place new rules intended to tighten safety.
The process is coming to its natural end,” Robert Gibbs, the White House press secretary, told reporters on Tuesday morning. “I believe the process will wrap up very soon.”
A few drillers are moving up on the news. Transocean Inc. (RIG) is one of them. The ticker has lifted $1.50 over the past hour following a renewed short-term strength.
RIG, which has a negative 52-week change of 31.21%, has added more than 4% so far in electronic trading. Technically speaking, the stock has been moving largely higher over the past month. Shares are currently above ticker’s 50-day moving average of $57.23 and lower its 200-day moving average of $68.42. The equity recently started pulling back to test the $60 mini-support level, but a reversal now seems in progress with shares currently printing at high of day and looking good on volume of 4.5 million shares trading hands.
With a renewed deepwater drilling interest — an area that is definitely picking up again — there is still room for optimism to grow toward RIG shares. If bidders step up the ticker could test the mid $68 region within a period of 3-6 months.
At last check, RIG shares were up $2.65 to $64.55, a gain of 4.30%.