Energy stocks are chiefly trading in the green Monday, with YUMA stock leading the way, trading up by more than 80%. The gains come after an attack on an oil refinery in Saudi Arabia; this means, because of supply and demand, the oil market will continue upwards, giving support to companies like Yuma Energy (NYSEAMERICAN:YUMA).
Here’s what we know.
YUMA Stock Jumps on Attack on Saudi Arabian Oil Refinery
In Saudia Arabia, an oil refinery was recently attacked. Some believe Yemen rebels are behind the attack, but the US government is claiming that either Iran or Iraq is responsible. The facility in question is responsible for the output and processing of roughly 5 million barrels of oil each day, which means it’s going to take some time before the refinery returns online. Yet, because of supply and demand, this attack means oil will continue an upward trend, giving support to YUMA stock. And we can see that support today.
Plus, if geopolitical tensions continue to grow (and that’s what this is: geopolitical tension), YUMA stock might continue to grow even more. Just imagine where energy stocks would sit if it goes past a loss of 5% of the global output of oil, which is what’s happening right now.
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YUMA stock soaring is good news for the company, but the attack on the oil refinery is not a matter to push to the side. The United States is accusing Iran, a country it is already at odds with. The tensions between the United States and Iran are so severe that some claim the issues between the two could lead to the next world war. But as worrying as that is, we still look at YUMA stock with optimistic eyes.
At the time of writing, YUMA stock is trading at $6.05, which puts YUMA stock up 83.13% on the NYSE American.
Takeaway
What do you think about energy stocks like YUMA Energy trading up because of the attack? Let us know your thoughts in the comments below.
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