Gas and oil companies have been in focus as the Russia-Ukraine conflict wagers on. Coming into view is Camber Energy (NYSEMKT:CEI), which saw it shares close higher today by nearly 32%. While CEI stock remained calm today until around 1:30 p.m. Eastern, the stock subsequently saw a massive increase in price. An analysis of the company’s investor relations page shows no new updates, so why exactly is Camber Energy soaring today?
Why Is CEI Stock Up Today?
The news explaining Camber’s price acceleration may be attributed to the White House. It was reported today that President Joe Biden is contemplating a ban on U.S. imports of Russian crude oil. Earlier this month, the Biden administration suggested that they were most likely not going to ban Russian oil imports. However, with Russia’s continued escalation, bipartisan support for such a move is growing.
What Will a Ban on Oil Imports Mean for Camber Energy?
Last year, Russian crude oil accounted for roughly 3% of U.S. crude oil imports. Based on this figure, a ban on Russian oil would not create huge impacts for the U.S. However, the ban would likely have a global ripple effect that would send the price of oil higher.
Adam Pankratz, a professor at the Sauder School of Business, explained that:
“If the US stopped importing Russian oil, that would mean that likely many other countries would also no longer be importing Russian oil, and that would make a very tight oil market already much tighter, and that would drive up the price of oil and that in turn can drive inflation, which in turn can affect the US economy.”
In turn, Camber could possibly capitalize on the higher price of crude oil. The price of West Texas Intermediate (WTI) crude oil has surged higher by more than 25% in the past month.
However, investors should remember that CEI is still a penny stock with spotty financials. In the past, the company has been late to file financial forms and was the subject of a short report by Kerrisdale Capital.
On the date of publication, Eddie Pan 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.
