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Seadrill suspends dividends slumps 10% - ahead of OPEC meeting

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The low oil price is starting to hurt some of the industry's largest companies. Seadrill has suspended dividend payments a move to strengthen its balance sheet has caused a 10% drop in stock price. The world's largest offshore deepwater driller has seen its share price fall by around 50% since the summer when the price of crude started to fall. OPEC meets this week but there are muted expectations for price rise action. Saudi Arabia is giving many observers the impression that the most powerful OPEC countries are enjoying the pain of the US shale oil producers as well as, in the Saudi case, Iran's suffering as oil revenues fall. 

Saxo Bank's Head of Equity Strategy Peter Garnry looks at the case of Seadrill and more broadly how equity markets are reacting. Just two weeks ago, it looked as though bids were coming in for energy stocks as sentiment appeared to shifting towards a price rise. Now, those bets are off.