Allied Energy Corp. (OTCMKTS: AGYP) oil is more in demand now even as global prices dip. Oil industry insiders say U.S. may open its strategic oil reserves to help stop the impact of its energy shortages. Higher prices at the pump are not good for the Biden Administration.
“It is questionable whether this will cause OPEC+ to soften its stance,” said Carsten Frisch, an analyst at Commerzbank AG in Frankfurt, Germany. Still, the “debate about the release of strategic oil reserves is weighing on prices.”
Oil prices are also dropping due to the Fed’s actions related to cutting stimulus bond buying. The impact would mean an eventual increase in interest rates, economists say.
Last night, WTI crude was trading at $79.83 per barrel and Brent Crude settled at $81.13. This pricing remains high, but well below top prices.
AGYP was quiet but its stock closed green at $0.3172, up 2.32%, in light volume of146,876.
AGYP has already hit five oil and gas wells combined on the Green Lease Site and Annie Gilmer Site. Its oil & gas experienced management and field drillers have been successful in hitting oil and gas. Ahead is the Company’s exploration on the Prometheus site. AGYP is focusing on the 28 Unit Well 1-H at the Prometheus well site.
Oil market prices remain high and shortages persist. AGYP reports on its progress at Prometheus as global prices dip. Yet, they remain high. As late as 2016, this Prometheus well produced 200 barrels of oil daily. It also generated 300,000 cubic feet of natural gas.
The catalyst for AGYP is that it can make older or abandoned commercial wells new again. It uses 2021 technology to revive these wells. The newest techniques include fracking, down hole drilling and horizontal ‘legs’.
AGYP is an U.S. oil-producing Company. And now it is exploring for more. Global oil remains high in price and a scarce commodity. AGYP produces oil and gas from domestic wells in Texas.
WTI Futures sank 2.4% yesterday after President Biden blamed OPEC and its allies for inflationary pressure in the U.S. OPEC remain steadfast in not raising oil production.
Jake Sullivan, National Security Advisor, declined to say whether the option of relaxing oil shortages by opening the U.S. reserves was an option. With global oil pricing in disarray, AGYP can play a significant role in producing its own domestic oil.
An oil and gas engineer early last summer determined that AGYP had some $32 million in oil and gas reserves at current prices. He used out-dated $46 per barrel pricing at the time. He also did not analyze potential oil and gas reserves at Prometheus.
Keep AGYP on your Watch List as energy stocks grow in this uncertain global environment.