Energy Penny Stocks Get Boost From OPEC News
What’s going on with energy stocks today? Unless you’ve been entirely offline on Wednesday, OPEC hosted an October meeting. The 45th Meeting of the Joint Ministerial Monitoring Committee and the 33rd OPEC and Non-OPEC Ministerial Meeting occurred in person at the OPEC Secretariat in Vienna, Austria.
This was the first in-person meeting since March 2020 and shook up markets today. The decision was made for OPEC+ nations to cut their oil production by 2 million barrels per day, which helped spark bullish price movement in oil prices and energy penny stocks.
But that was not the only oil & gas-related news to prompt optimism for oil stocks. The White House said that it was clear that OPEC+ was aligning with Russia. The U.S. President is now directing the Energy Secretary to explore additional responsible action to boost domestic production. In the meantime, strategic petroleum reserves will be released appropriately.
Organizations, including the Environmental Protection Agency and even the U.S. Treasury, are weighing in on domestic energy initiatives. The EPA is expected to propose biofuel blending mandates post-2022 to the White House by the end of next week.
The Treasury, in the meantime, has said it will move quickly to write rules to offer clarity on new clean energy tax incentives. This has all boiled down to several bullish catalysts for energy stocks today. Whether you’re trading penny stocks or names like Exxon Mobil (NYSE:XOM), chances are these headlines are becoming a factor in your forward-looking strategy.
Energy Penny Stocks To Watch
Against this backdrop, there are plenty of energy penny stocks to watch today, and they’re not all oil & gas focused either. Everything from green energy to natural gas & anything in between is gaining momentum. Here’s a list of penny stocks, most notably gaining interest right now. Something to pay attention to is the energy industry news cycle as a whole. Since this is the root catalyst for moves in many of these names, additional updates can impact the broader trend. That includes both bullish and bearish moves, so make sure you understand the risks involved with sympathy trading.
- Camber Energy (NYSEAMERICAN:CEI)
- Transocean Limited (NYSE:RIG)
- Tellurian Inc. (NYSEAMERICAN:TELL)
- Ring Energy (NYSEAMERICAN:REI)
- Nine Energy Service Inc. (NYSE:NINE)
Penny Stocks To Watch 1. Camber Energy (NYSEAMERICAN:CEI)
One of the cheapest penny stocks on this list is Camber Energy. It was a massive winner for traders earlier this year as speculation, high short interest, and social media-fueled momentum took shares to highs of nearly $2. Since then, CEI stock has been down in the dumps, but the latest industry news has prompted a bit more optimism in October.
Camber provides custom energy solutions to North American clients and own interest in oil & gas assets in the U.S. Its carbon capture system is also something of interest as green energy becomes more prominent. Camber has an exclusive license in Canada to the system, IP rights to a patent-pending waste treatment system, and an interest in companies with IP rights to a patent-pending eclectic transmission and distributions open conductor detection system.
As far as today goes, sympathy sentiment from the OPEC+ decision has put CEI stock back in focus.
2. Tellurian Inc. (NYSEAMERICAN: TELL)
The liquified natural gas company Tellurian Inc. has also garnered some interest in the stock market today. It has a portfolio of production, marketing & trading, and infrastructure assets, which have sparked interest from investors over the last few months.
Most recently, however, TELL stock is still trying to bounce back after Shell terminated a deal with Tellurian, which resulted in a massive sell-off in September. The company signed agreements in July 2021 to supply three million tons of LNG annually to Shell for ten years.
As TELL stock slowly recovers, Chairman Charif Souki has stirred the proverbial pot, calling out European Energy Policy. He argued that Europe should invest in U.S. LNG amid the energy crisis.
“You have to have the political will,” he told the Energy Intelligence Forum in London. “So far, it’s all talk and very little action.” Spending on more U.S. gas infrastructure “is the best way to get gas at cost.”
Regardless of the comments, TELL stock has gotten wrapped up in the list of energy penny stocks to watch today, thanks to the latest industry catalysts.
3. Transocean Limited (NYSE:RIG)
Offshore contract drilling services company, Transocean is, of course, on this list of penny stocks. It has been a company in more frequent discussions as of late. In the article Penny Stocks To Buy Now: 3 To Watch With Unusual Options Activity Today, we highlighted some bullish undertones in the market. More specifically, activity in the options market.
At the time of the article, the contracts in focus were the November 18th $3 Calls. There was nearly three times the volume compared to Open Interest in the stock market today, with 21,800+ traded by the time this article was written. Today, the open interest in those same options is over 7,000 contracts greater.
This week Transocean inked a deal with Salunda Limited for Transocean’s HaloGuard real-time zone management technology. The platform offers location tracking with a machine vision system to locate personnel on the drill floor during operations. With energy stocks in focus, RIG stock could have established a place on the list of stocks to watch, considering it’s not only sympathy sentiment but company-related news prompting attention.
4. Ring Energy (NYSEAMERICAN:REI)
Another one of the energy stocks we’ve had on the watch list this week is Ring Energy. This was thanks, in part, to a recent asset acquisition in the Permian Basin. The transaction saw Ring snap up assets of privately held Stronghold Energy II Operating and Stronghold Energy II Royalties.
“During the next several weeks, the Company plans to complete its development and operational plans for the combined entity and intends to provide updated guidance for the remainder of 2022, as well as an initial outlook for full year 2023.”Ring Energy
The move came shortly after 10% owner William Kruse snagged several million dollars worth of REI stock under $2.70 in August.
5. Nine Energy Service Inc. (NYSE:NINE)
Finally, Nine Energy shares surged with the rest of the energy sector stocks today. The company hadn’t released an update since early September, when it regained compliance with NASDAQ. Prior to that, the penny stock was still trying to regain the momentum that was lost after reporting mixed earnings for its second quarter.
The oilfield services company reported revenue of $142.3 million and a loss per share of 3 cents. This missed Wall Street estimates of a loss per share of 2 cents. However, management remained optimistic and gave an upbeat outlook in its August presentation.
“The outlook for the remainder of 2022 and 2023 is positive…we believe North American shale and short-cycle projects will be vital for global supply. Additionally, oilfield service companies, including Nine, are demonstrating capital discipline, which has limited available equipment in the market. Any capital equipment orders being placed are delayed up to 12 months and will need to be staffed. This backdrop sets up very well for Nine.”
Thanks to news supporting domestic energy production, NINE stock has come back into focus and regains much of what it lost over the last several weeks.