At time of writing, the share price of Sundance Energy Australia Ltd. [ASX:SEA] is down 8.73%, trading at $.0575.
Sundance Energy is a US onshore oil and gas producer with production and exploration opportunities in the South Texas–Gulf Coast Basins.
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Revenue up for Sundance but lower oil prices continue
SEA has recently announced an approximate 70% year-over-year increase in revenue, but this has not halted its slide since 9 October.
Sundance Energy could use a bounce in oil prices
With a fate so closely tied to oil prices, the share price of Sundance Energy could use a bounce in oil prices.
Determining where oil prices will go is a notoriously difficult task, but there are indicators which point to slowing global growth as a primary factor.
That being said, Saudi Arabia has indicated that it may cut output by 500,000 barrels per day.
Added to the mix are Iranian sanctions and increasing Chinese demand.
So while it may look grim for Sundance Energy at the moment, a turnaround could be in the offing.
Markets & Money’s Jason Stevenson has an excellent piece on the outlook for oil available here.
He signals that what we are seeing with oil is a ‘false intra-month breakdown.’
Perhaps this could be an opportunity to buy.
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