Diamondback: Drilling Rigs in Permian to Increase as War Lifts Prices

The news headline indicates that Diamondback will increase its drilling rigs in the Permian Basin, signaling a potential rise in production and possibly higher revenue for the company. However, the stock has declined 9.4% in the last 24 hours, and its RSI of 30.9 is approaching oversold territory. Although the MACD remains in negative territory, it has crossed above the signal line, which could indicate a short-term recovery. The price is below the 20-day moving average, but the positive news combined with oversold technical conditions may set the stage for an upward move. In the short term, the likelihood of a bullish movement appears moderate.

Although the news signals an increase on the supply side, the phrase 'war raises prices' could boost oil prices by increasing the geopolitical risk premium. Technical indicators present a neutral-positive picture: the RSI at 51.6 is neither overbought nor oversold, and the MACD is below zero but close to crossing above its signal line, indicating short-term upside potential. The price is trading above the 20- and 50-day moving averages, which strengthens support levels. Despite a 1.76% decline in the last 24 hours, the combination of news and technical structure suggests a limited rise can be expected in the next 1-3 days.

XOM stock has experienced a 6.8% decline over the past 24 hours, with its RSI approaching the oversold territory at 32.8. Although the MACD remains below the signal line, the narrowing gap may indicate weakening bearish momentum. News headlines suggest an increase in drilling activities in the Permian Basin, which could be a positive signal for major players like ExxonMobil. However, as the stock price trades below both the 20-day and 50-day moving averages, it is difficult to determine a clear short-term direction. Therefore, a balance is expected between the market pricing in the news and the potential for a technical recovery.

Diamondback’s ‘war prices’ and the growing number of drilling rigs in the Permian basin may lift overall oil prices, which could positively impact CVX’s revenue. However, the increased production potential could also exert downward pressure on prices. CVX’s current technical indicators—RSI at 34.6, a negative MACD, and a price below both the 20‑ and 50‑period simple moving averages—suggest a short‑term downward bias. Consequently, the news may have a limited effect, and the market may struggle to establish a clear direction. In the near term, the price is expected to trade within the $180–$185 range.