Yuma Energy YUMA Stock News

Yuma Energy Inc (NYSEAMERICAN: YUMA) is leading the charge among energy stocks this morning, with most trading in the green. The gains come after an attack on a Saudi Arabian oil refinery, sending YUMA stock up more than 50% early on.

YUMA isn’t the only stock that’s flying either. Danbury Resources (NYSE: DNR) is trading on gains of more than 25%, Camber Energy (NYSEAMERICAN: CEI) is up more than 15%, and Chesapeake Energy (NYSE: CHK) is gaining more than 12% early on.

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Here’s what you need to know!

YUMA, DNR, CEI AND CHK Stock Gains Are Likely Just Beginning

Ultimately, the gains that we’re seeing from Yuma Energy and its peers are not likely to be a short term blip on the screen. The truth of the matter is that the story in oil is a very big one.

The oil facility that was attacked in Saudi Arabia is responsible for production and processing of more than 5 million barrels of oil per day. That equates to about 5% of the global production on a daily basis.

With the attack in mind, it’s going to take quite a bit of time before this facility comes back online, starving global supply of 5% of the oil that it did have. As the law of supply and demand tells us, this means that oil will likely continue upward, providing further support for stocks like YUMA, DNR, CEI and CHK.

However, the outlook goes a bit deeper than that. At the moment, Yemen rebels are taking responsibility for the attack. However, the government in the United States is insisting that Iran and/or Iraq had a major hand in the attack.

Ultimately, this just goes to further geopolitical concerns. At the moment, Iran is under oil sanctions and the US and Iran are at odds about nuclear capabilities. Many have suggested that these issues could lead to war between the two nations, and potentially the next world war.

As geopolitical tensions continue to grow, YUMA stock and others in the space are likely to see continued support. After all, while the loss of 5% of the global production of oil is a big hit, that could expand should tensions continue to rise.

What To Watch For Ahead

Moving forward, there are a few things that you’ll want to watch closely to get an idea of where oil is headed next:

  • Saudi Recovery – While it is going to take some time to bring the Saudi Arabian facility back to full capacity, any news surrounding the recovery will likely lead to moves in YUMA, DNR, CHK, CEI and others in the space as the value of oil reacts to the news.
  • United States – Pay attention to statements made by President Trump and other members of the United States government. Geopolitical unrest often leads to gains in the value of oil, and therefore the stocks that represent companies that make their money from the production of the commodity.
  • Iran – While Iran has claimed zero responsibility here, the country is at the epicenter of the story. So, pay attention for moves made by Iran ahead as they could escalate the overall geopolitical unrest.

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