Imdex Share Price Down as Investors Sell amid Oil Price Surges

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.

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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:

trading view crude

Source: tradingview.com

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.

Regards,

Ryan Clarkson-Ledward,
For 
Markets & Money

PS: If you are interested in mining stocks, check out our free report on the 2018 Mining Boom. Could these 10 cheap, top-quality Aussie mining stocks lead this year’s commodities comeback? Find out here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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