What happened to Origin’s share price?
Origin Energy Ltd [ASX:ORG] is trading 3% higher today at $12.00.
However, the longer term trend doesn’t look great. From a peak of $16.12 in September last year, ORG has lost more than 25%. It began to stage a recovery in mid-February, but it wasn’t sustained, and ORG has been in a downtrend since.
But it’s not just Origin trading higher today – a number of energy stocks are higher this afternoon. Senex Energy Ltd [ASX:SXY] is up 1.61%, and Santos Limited [ASX:STO] is up 2.10%.
Why are ORG shares higher?
The share price rise come off the back of a rebound in oil prices overnight. Brent crude gained US$1.00, rising to US$57.80 per tonne, while WTI crude is 0.7% higher at US$50.79 per tonne.
The oil price bounce followed falls of around 6% in both Brent and WTI on Wednesday. And since mid-2014, when it was trading well above $100 per tonne, oil has more than halved in price.
What now for Origin Energy Ltd?
Despite last night’s moves, there’s doubt that oil prices have yet to reach a floor. If oil prices do fall lower, we can expect ongoing pain for Origin and the wider energy sector.
for The Daily Reckoning Australia