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

Rex Energy (REXX) is having an incredibly rough day in the market today. Since the opening bell, the stock quickly found itself in the red and continued to fall further thus far throughout the session. Below, we’ll talk about what we’re seeing from the stock, why, and what we should be watching with regard to REXX ahead.

[Image Courtesy of Public Domain Pictures]

What We’re Seeing From REXX

As mentioned above, Rex Energy is having an overwhelmingly rough day in the market today. As soon as the opening bell rang, the stock found itself in the red. Since then, the stock has only fallen further. At the moment (12:50), REXX is trading at $0.41 per share after a loss of $0.04 per share or 8.46% thus far today.

Why The Stock Is Falling

The truth is that REXX and many others in the energy sector were experiencing relatively strong gains recently. Ultimately, the gains were the result of hopes that OPEC would reach an agreement by their deadline date, November 30th. However, that date is approaching quickly and hopes are starting to wane as concerns increase.

The reality is that while OPEC has gotten most members to agree to a production cut, there are still several questions surrounding Iraq and Iran. Without these two, the production cut likely won’t take place and Rex Energy and other companies in the sector will suffer. Ultimately, the declines today are the result of concerns that the deal may not come to fruition.

What We’ll Be Watching For Ahead

Moving forward, there’s likely to be quite a bit of volatility surrounding REXX and others in the oil and energy sector. The volatility will likely be the result of news surrounding the OPEC story. So, keep a close eye on the developments as they become available. Also, Wednesday is the big day when the deal should be finalized. So, make sure you’re ready to take advantage of any opportunities coming then as well!