5 Stocks Entering June in the Wrong Direction

In this article, we deep dive into the 5 stocks that fell sharply on Monday. For a deeper discussion and an extended list, please see 10 Stocks Entering June in the Wrong Direction.

Photo by Tima Miroshnichenko on Pexels

5. Sable Offshore Corp. (NYSE:SOC)

Sable Offshore fell by 11.13 percent on Monday to close at $13.02 apiece, as investors turned cautious over its pipeline operations in California after lawmakers launched an inquiry to look into offshore drilling.

This followed a letter dated May 27 to Sable Offshore Corp. (NYSE:SOC) seeking an explanation over its push to restart oil production off the Santa Barbara coast, and for its efforts to use the Defense Production Act (DPA) to help resume operations.

The lawmakers argued that the federal law is being stretched well beyond its intended purpose, saying that the Trump administration’s use of the DPA appears to be linked to Sable Offshore Corp.’s (NYSE:SOC) request to resume offshore oil activity despite objections and legal issues.

The company was also asked to provide internal records and communications dating from January 2024, including contacts with the White House, Department of Energy officials, Trump campaign operatives, and outside intermediaries.

President Donald Trump’s Cabinet officials, Energy Secretary Chris Wright, Interior chief Doug Burgum, and Transportation Secretary Sean Duffy, are also set to visit Sable Offshore Corp.’s (NYSE:SOC) oil project later this week to discuss the legal strategies in its ongoing dispute with California authorities.

It can be learned that operations at its offshore unit, Santa Ynez, have already started in May, but Sable Offshore Corp. (NYSE:SOC) remains unable to sell or transport hydrocarbons through its Las Flores unit amid legal issues.