Oil Stocks Alert: What’s Happening With IMPP, CIS, INDO Stocks Today?

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A number of small-cap oil stocks are trending higher today as the price of crude oil hits an eight-year high on news that Russia has attacked neighboring Ukraine.

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actions such as Imperial Oil (NASDAQ:IMPP), Camber energy (NYSEMKT:IEC) and Indonesia Energy (NYSEMKT:INDO) are each up more than 30% in trade today as crude oil prices exceed $100.

The shares of several oil majors, such as Chevron (NYSE:CLC) and ExxonMobil (NYSE:XOM), each rose more than 3% in premarket trading before reversing.

What happened with oil stocks

Oil prices jumped higher on news that Russia attacked Ukraine, West Texas Intermediate crude oil futures traded above $98 a barrel. Global benchmark Brent crude oil jumped to $103.75 a barrel, breaking above the $100 level for the first time since 2014. The news pushed oil producer inventories higher today amid a global sell-off on the steps.

Russia is a major oil supplier to countries like Germany and France, and the prospect of war has sent oil prices soaring. Additionally, the global response to the Russian-Ukrainian conflict has created further supply challenges. For example, Germany has announced that it shutdown certification of the Nord Stream 2 gas pipeline. The 750-mile pipeline was completed last September but has not received final certification from German regulators. Without this certification, natural gas cannot flow through the pipeline from Russia to Germany.

why is it important

Energy stocks have been among the few winners so far in 2022. Even before today’s strong global equity selloff, markets around the world were down. In fact, both the S&P500 and Nasdaq were officially in correctional territory. However, the escalating crisis in Ukraine has helped to push the price of crude oil steadily higher, which has been a positive catalyst for oil producers and their stock prices. The $100/barrel level is considered a key threshold for global oil prices.

Small-cap oil stocks are seeing a particular bonanza today. For titles like IMPP, CEI and INDO, this is good news. Even before today’s rise, Indonesia Energy’s stock was up 164% year-to-date. However, Imperial Petroleum fell 57% on the year and Camber Energy 34%. These stocks should continue to rise in the near term, reflecting higher oil prices.

What’s next for CEI, IMPP, INDO

As oil prices go, so do oil company stock prices. Oil producers, large and small, are likely to continue to see gains in the short term as the Ukrainian crisis escalates and the price of crude oil continues to rise. However, any gains could be short-lived if Russian attacks cease quickly or the Organization of the Petroleum Exporting Countries (OPEC) increases global supply. Investors should continue to watch oil prices closely in the coming days.

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At the date of publication, Joel Baglole did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

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