Vallourec Shares Drop Nearly 3%, Hit by Brent Crude's Decline
The stock of the seamless tube specialist suffers in the mid-afternoon, following a plummeting oil market. The decline comes after several weeks of significant increase, which had pushed the stock price to a six-year high.
Brent's Decline Weighs on Vallourec During Consolidation Session
Vallourec's stock falls 2.99% to €23.98 in mid-afternoon trading, while the CAC 40 index is up by 1.03%. This movement occurs in a context of high tension in the oil market, with Brent crude retreating more than 5% to $94.52 per barrel, amid fragile talks between Washington and Tehran concerning the Strait of Hormuz. The stock, directly exposed to the oil cycle through its tubes for offshore producers, is paying the price for this correction in the barrel price. The decline erases part of the recent rally, without weighing on the medium-term trend: the stock still holds a gain of 20.68% over three months and 56.43% over a year. The previous session had already ended with a slide after the six-year peak of €27.67 reached the week of May 14, following the publication of the first quarter accounts which had shown an operating gross margin of 22.6%.
Technical Analysis and Market Positioning
From a technical standpoint, the stock has fallen below its 20-day moving average (€25.00), while remaining well above the 50-day moving average (€23.24), which acts as the first cushion, and more than 31% above the 200-day moving average. The RSI at 52 remains neutral, indicating a breathing movement rather than a bearish acceleration signal. The technical support at €23.25 almost coincides with the 50-day moving average, setting a tight benchmark for the rest of the session. Regarding market positioning, four funds collectively hold 8.76% of the capital sold short according to reviewed declarations, a level that has not changed over thirty days. This stability indicates that part of the market remains positioned against the stock or as a hedge, without recent acceleration of the bearish bet, to be interpreted alongside the strong annual performance. During the first quarter 2026 report on May 13, the group confirmed its intention to distribute nearly 650 million euros to shareholders by August, the main anchor point for the stock in the coming weeks.
