Friday, June 18, 2010

Transocean (NYSE:RIG) Looking Better on Decreased Liability Outlook

Some of the oil companies that had connections to the Gulf oil spill are starting to gain back share price they had lost, including Transocean (NYSE:RIG), as BP (NYSE:BP) continues to look like the oil company which will be by far the most liable in the situation.

"One of the big uncertainties was trying to decipher the fault and legal liability, and when that was unclear, people took everyone and anyone involved out to the woodshed on this," Sterne Agee analyst David Havens said. "It's becoming more and more clear that BP owns the majority of the liability."

The growing realization that market could have overreacted to the oil sector as a whole, and some of the oil companies involved in the Deepwater Horizon oil rig and well, has caused formerly spooked investors to return, has some of the share prices gaining back some of the share price.

Much of this is the result of documents obtained which point to BP (NYSE:BP) making some bad decisions which led up to the disaster, although absolute proof of what happened has yet to be determined.

Transocean was up over $4.00 a share, or 8 percent as of 2:05 PM EDT.

No comments: