Sable Offshore Corp. (NYSE:SOC) shares are down on Friday following a lawsuit filed by California Attorney General Rob Bonta against the Trump Administration to block the restart of oil transport through the Sable Pipeline.
Sable Offshore stock is showing notable weakness. Why is SOC stock dropping?
The lawsuit challenges the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) orders that allow Sable Offshore Corp. to restart operations of its Las Flores Pipelines in California. Bonta argues that these orders violate the Administrative Procedure Act and seeks to overturn PHMSA’s decision to grant Sable an emergency permit for oil transport.
The legal action highlights concerns over environmental and public health impacts associated with coastal oil spills, emphasizing California’s commitment to state regulation over federal authority. Bonta stated that the Trump Administration is prioritizing profits for the fossil fuel industry over the safety of California’s coastline and communities.
Technical Analysis
Sable Offshore Corp. is currently trading 5.7% above its 20-day simple moving average (SMA) but is 13% below its 100-day SMA, indicating some short-term strength while struggling in the longer term. Over the past 12 months, shares have decreased by approximately 61.62%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 65.39, which is considered neutral territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of neutral RSI and bullish MACD indicates mixed momentum, reflecting uncertainty in the stock’s near-term direction.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Sable Offshore, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bearish (Score: 1.47) — Stock is showing very weak performance indicators.
The Verdict: Sable Offshore’s Benzinga Edge signal reveals a classic case of underperformance. The bearish momentum score indicates that the stock is struggling to keep pace with the broader market, suggesting caution for potential investors.
Shares Slide During Midday Trading
SOC Price Action: Sable Offshore shares were down 13.23% at $10.76 at the time of publication on Friday, according to Benzinga Pro data.
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