Yuma Energy Inc (NYSEAMERICAN: YUMA) is making a run for the top in the market this morning, trading on gains of more than 28%. While the stock is up, the company hasn’t released any news as of late that would suggest that these gains were ahead. So, what’s going on?
Here are three reasons that investors are excited about YUMA stock:
YUMA Stock Benefits From Geopolitical Blues
First and foremost, oil has been a big topic of conversation as geopolitical tensions rise in the middle east. It all started with an attack on a Saudi Arabian oil refinery, the largest in the region.
The attack took a large portion of Saudi Arabian oil out of the global market, a portion that represented about 5% of the global supply of the commodity. Of course, the law of supply and demand tells us that when supply declines, we can expect to see price gains. Of course, that’s great for Yuma Energy and others in the industry.
At the moment, tensions are continuing to heat up as the blame for the attack has been placed on Iran. In fact, it was recently announced that the United States will be putting boots on the ground in Saudi Arabia to protect the region against Iranian aggression.
Even more recently, yet another middle-eastern oil attack took place. In this particualr case, an Iranian oil tanker was recently attacked off of the coast of Saudi Arabia. The attack took place early Friday morning, with missiles hitting a tanker loaded down with about 1 million barrels of Iranian crude oil.
While Iran hasn’t blamed anyone for the attacks, tensions continue to grow and the target of attacks seem to be on oil assets. This is very important to keep in mind.
After all, war is never a good thing. However, as geopolitical tensions continue to expand, and the target of attacks are massive oil assets, there are concerns that further supply blues will hit the market. That may mean more money spent at the pump for consumers, but for investors, it means that oil stocks like YUMA may be a great place to be at the moment.
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