At time of writing Imdex Limited [ASX:IMD] shares are down 3%, trading at $1.29 apiece.
Despite the loss, this represents a significant gain on its one-year low of 81 cents.
Imdex is an Australian company that provides tools and technology to mining, oil and gas drilling operations.
These include drilling fluids, drilling equipment, instruments, software and data solutions.
So far Imdex’s performance over a one-year period is strong with a 59% gain.
They have also established operations in all the key mining areas of Africa, Asia Pacific, Europe and the Americas.
Understanding the Imdex story this year is quite simple.
Imdex tracks well with oil
Below is a chart that matches Imdex Price Growth with WTI crude oil over the past six months:
The WTI (West Texas Intermediate Intermediate) crude oil tracks the price of oil that comes out of the US, in particular the Midwest and Gulf Coast States.
As you can see, there is a strong correlation between the price of oil and the price of Imdex.
With some seeing oil hitting $100 a barrel amid tensions with Iran and the possibility of sanctions, Imdex could stand to benefit.
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