As the global response against Russia’s invasion of Ukraine intensifies, oil inventories remain a focus. Today was especially true. Why?
Today, President Joe Biden announced that the United States would stop imports of oil, natural gas and coal from Russia. This is the latest sanction imposed on the country following its continued invasion of Ukraine.
The move may surprise some investors, as Russia is the world’s second-largest natural gas producer. What does this mean for oil stocks?
Well, oil and gas prices have hit near-record highs in recent days. Concerns about supply and potential shortages have been driving these moves. Today, in his remarks on the ban on Russian energy imports, Biden acknowledged that gas prices are likely to rise further. For investors in oil stocks, this seems to have been a catalyst for growth today.
Oil stocks jump on tougher sanctions
Today marked a continuing chronicle of oil companies rising amid global supply chain concerns. Indeed, a number of major oil and gas stocks have seen remarkable jumps since Russia began its invasion of Ukraine.
New Energy Service (NYSE:NINE), American Energy (NASDAQ:USEG), Well services in the United States (NASDAQ:USWS), Enservco (NYSEMKT:ENSV) and Chevron (NYSE:CLC) all closed in the green today. While USEG and CVX posted solid gains of 16% and 5%, respectively, NINE and ENSV stocks clearly stole the show. Nine soared 57% today, marking an increase of more than 300% in just one week. Enservco had a similar story, jumping 68% today. ENSV is currently trading around $4.20 per share, while on March 3 the company was trading at $1.14.
Oil remains a hot topic as the invasion of Ukraine rages on. Whether oil stocks will stay on their current trajectory is unclear, but investors will certainly keep their eyes and ears on the industry as things unfold.
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As of the date of publication, Shrey Dua did not hold (either directly or 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 publishing guidelines.