A new record for natural gas prices has pushed Camber Energy (NYSEMKT:CEI) stock higher today.
Today marks the highest price point for natural gas in the U.S. since 2008. As the war in Ukraine drags on, the global energy crunch continues, leaving governments scrambling to find solutions. This has meant a renewed focus on oil and gas, sending prices up across the U.S. and Europe. Today, CEI stock is seeing impressive gains while some of its larger peers are struggling.
E&E News reports that “prices at Henry Hub, the benchmark for U.S. gas, have nearly doubled since the start of the year.” As of last Friday, they sat at $7.30 per million British thermal units, indicating a gain of roughly 10% today.
Alongside this, Camber Energy shares have rallied. As of this writing, CEI stock is up more than 20%. That brings its gains over the past five trading days to 30%.
Why It Matters for CEI Stock
Few penny stocks receive as much attention as CEI. Trading a just over $1 per share, it has squeaked above micro-cap status. Though often overlooked by investors, it has garnered favor as a meme stock throughout the past year. Its carbon dioxide-capturing technology has garnered some criticism, but experts have praised Camber’s foray into clean energy.
“Even with its high amount of risk, this nonetheless remains one of the more interesting clean energy plays out there,” notes InvestorPlace analyst Louis Navellier.
The trend of rising natural gas prices has certainly made for a more interesting industry landscape. CNBC reports that natural gas prices in the U.S. are up 102% for the year. While it makes sense that this would send names like CEI stock shooting up, its larger peers are falling today. Cheniere Energy (NYSEMKT:LNG) is down slightly while Tellurian (NYSEMKT:TELL) has fallen by 2%.
CEI stock is receiving significant attention on social media today despite no company-specific catalysts. Investors on Twitter (NYSE:TWTR) are pushing hard for CEI to rise above $3. While rising LNG prices may be helping CEI rally today, the declines from its larger peers suggest that what we are seeing today may also be tied to Camber’s meme stock status.
What It Means
If that is correct, there’s no telling where CEI stock is headed. Camber is a perfect meme stock for investors seeking oil and gas plays. While it is volatile, CEI has gained 40% so far in the year to date.
This is an opportune time for an oil and gas meme stock. Prices are rising and the energy crisis isn’t likely to subside anytime soon. It makes sense that CEI stock would be in the green. The only question is how long it can stay there. While this may be Camber’s breakout moment, investors should still proceed carefully.
On the date of publication, Samuel O’Brient did not have (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.