The Oil market continues to swell in 2021, and all thanks to the OPEC drama, the investor’s in the oil and gas sector are laughing all the way to the bank.
Last year we saw oil producers resorting to cash-raising activities to bounce back from crashing oil prices. They can suddenly sell in-ground oil ahead in the futures market above $70/bbl, which is the first time that has been true in years. There is no doubt that OPEC and supply deficits will continue to be a tailwind. Some of the companies at the center of rising oil prices that are garnering attention from WallStreet include Diamondback Energy Inc (NASDAQ:FANG), Cimarex Energy Co (NYSE:XEC), Viking Energy Group Inc (VKIN), PDC Energy Inc (NASDAQ:PDCE), Callon Petroleum Company (NYSE:CPE), HP Inc (NYSE:HP), Camber Energy Inc (NYSEAMERICAN:CEI), PBF Energy Inc (NYSE:PBF), and Matador Resources Co (NYSE:MTDR).
One small-cap company that favors rising oil prices is Allied Energy Corp (OTC Pink: AGYP). AGYP is an energy company focused on leasing and reworking oil and gas reserves in the most prolific hydrocarbon areas of the United States. The company announced an update regarding the progress being made at the Company’s M1 Well at their Green Lease location. From the investor’s perspective, this is exciting news as all the planned work outlined in the Company’s June 17, 2021 press release was completed in a timely and cost-effective manner.
CEO George Montieth commented: “Curtis has been managing our various oil projects with great efficiency and resolve. He is the man on the ground that is planning the work and then working the plan. I am pleased with the time we’ve made up on the Green Lease after battling heavy rains in northern Texas for several weeks. The entire crew is well-aware of surging oil prices and all of us are incentivized to bring wells online and producing this month.”
The stock prices have appreciated significantly since the end of June, from 30 cents to 80 cents. One important variable that could further trigger the rally and cause the stock prices to go parabolic is the current short position in the stock. As of July 9, more than 50% of daily volume is short volume. Further news and updates from the company can cause a panic among the short-sellers, and a buying frenzy could boost the stock to over a dollar. (Source:https://shortvolume.com/?t=agyp)
