TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Ocean Rig (ORIG), like many others in the oil and energy space, had a rough start to the trading session today. Early on, the stock took a dive. However, as the day continued, we saw a quick change in direction, leading the stock to the green. Below, we’ll talk about what we’re seeing from the stock, why, and what we should be watching for ahead.

What We’re Seeing From ORIG

As mentioned above, Ocean Rig wasn’t having the best start to the trading session early on. In fact, shortly after the opening bell, the stock started to make a run downward. However, early on, the declines corrected themselves, and the stock found its way back up to the green. At the moment (11:57), ORIG is trading at $1.52 per share after a gain of $0.02 per share or 1.33% thus far today.

Why We’re Seeing What We’re Seeing

The truth is that ORIG isn’t the only stock in its sector that’s been seeing the same type of activity. In fact, just about every stock in the sector had a rough start to the trading session before recovering. Now, oil stocks are just about all in the green. So, what’s going on in the sector that’s causing the strong movement? The answer is simple. It all revolves around OPEC.

Recently, oil stocks have been rallying as we near the November 30 deadline for an oil output deal. However, early on, investors were starting to get concerned. There was still the issues of getting Iraq and Iran on board with the production cut.

Early this morning, news broke with regard to the progress. That news was that Iraq had officially announced that it was on board with the agreement. This is a massive step toward finalizing the agreement before the deadline. As a result, we watched as oil climbed in value. Of course, this sent stocks like Ocean Rig and others climbing. After all, if the agreement is finalized, the reduced production will help to balance the supply glut.

What We Should Be Watching For Ahead

While things are looking good for ORIG and others in the oil sector now, it’s not over until the fat lady sings. That’s especially the case in a situation that’s surrounding by incredibly volatile geopolitical conditions. With that said, there’s one thing that you should be watching for when trading or investing in ORIG or other oil stocks ahead.

At the end of the day, it’s going to be very important to keep an eye on the oil production cut deal at OPEC. We all know that oil has been trading on lows ever since we learned of the supply glut. However, if we can find a way to balance supply and demand, the commodity can get back to growth. The deal is a crucial step toward that goal. With that said, any news surrounding the OPEC deal to reduce production will likely send waves through the market.