Today, former US Energy Secretary Dan Brouillette spoke with CNBC and said he “could very easily see oil hitting $100 a barrel, potentially even higher.”
This comes after last week’s failed OPEC+ talks and is a big reason why the former Secretary thinks the number could get so high.
These failed talks led to oil prices hitting 3 year highs yesterday. For the uninitiated, there are two major oil price indicators; WTI crude which is a US indicator and Brent crude which is the international indicator, both have been on quite a run. West Texas Intermediate crude futures climbed to $76.38 per barrel. At one point, WTI crude hit as high as $76.98, which was the highest price since November 2014. Brent crude also hit a new high of $77.32 per barrel, its highest price since late 2018.
OPEC+ is run by middle eastern oil giants Saudi Arabia and the United Arab Emirates. While the two countries are allies and generally on the same page, the breakdown in talks is a sign they are not on the same page.
As a result of this price movement in the commodity related stocks have been moving and should be near the top of your watchlists. North Texas explorer Allied Energy Corporation (OTCMKTS:AGYP) for instance, climbed 39 cents, or 150% during June, and momentum is on the company’s side. The stock currently at 65 cents has short squeeze potential. According to Finra, over 50% of the company’s recent volume has been short sellers.
AGYP spent last month making up for lost time due to an unusually rainy late spring delaying their exploration efforts at the company’s two major projects the Green lease and Gilmer lease. Both are historically producing projects that the company is reworking, truly a “green” lease.
ProPetro Holding Corp. (NYSE:PUMP) is a widely known oil and gas penny stock trading just under 10 dollars a share, and as of press time is up in the pre market. The company reported disappointing Q1 numbers last month, but from a technical standpoint looks like a stock that could benefit from extra momentum based on these surging oil prices.
There are several other oil & gas penny stocks up this morning in the pre-market session with favorable chart setups.
Abraxas Petroleum Corporation (NASDAQ:AXAS) is a $3.50 per share play that has been very quiet over the past 8 months after renewing Nasdaq compliance, that just looks good from a charting standpoint, and like AGYP and PUMP could benefit from the rise in WTI and Brent.
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