As the global response against Russia’s invasion of Ukraine heats up, oil stocks remain in focus. Today, this was especially true. Why?
Today, President Joe Biden announced that the United States would cease oil, natural gas and coal imports from Russia. This is the latest sanction levied against the country as consequence of its ongoing invasion of Ukraine.
This move may come as a surprise to some investors, as Russia is the second-largest producer of natural gas in the world. What does this mean for oil stocks?
Well, oil and gas prices have risen to near-record levels in recent days. Concerns over supply and potential shortages have been driving these moves. Today, in his remarks about the ban on Russian energy imports, Biden acknowledged that gas prices will likely increase further. For investors in oil stocks, this seems to have been a growth catalyst today.
Oil Stocks Jump on Tightening Sanctions
Today marked a continue chronicle of oil companies rising high amidst global supply chain concerns. Indeed, a number of major oil and gas stocks have seen remarkable leaps in the time since Russia began its invasion of Ukraine.
Nine Energy Service (NYSE:NINE), U.S. Energy (NASDAQ:USEG), U.S. Well Services (NASDAQ:USWS), Enservco (NYSEMKT:ENSV) and Chevron (NYSE:CVX) all closed in the green today. While USEG and CVX logged solid 16% and 5% gains, respectively, NINE and ENSV stocks clearly stole the show. Nine soared 57% today, marking a more-than-300% increase in just a 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 for $1.14.
Oil remains a hot topic as the invasion of Ukraine rages on. It’s unclear whether oil stocks will stay on their current trajectory, but investors will certainly keep their eyes and ears locked on the industry as things unfold.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.