Indonesia Energy (NYSEMKT:INDO) stock is rising higher on Tuesday alongside the increasing price of natural gas.
Natural gas is climbing in price — and it’s not a small increase, either. The price of natural gas has spiked to $10 per metric million British thermal unit (MMBtu) this morning. This marks the first time natural gas has hit that value since 2008.
As a result of this increase, investors are flocking to natural gas companies hoping for potential windfalls. That explains why shares of INDO stock are rising today alongside incredibly heavy trading. Some 43 million shares have traded hands as of this writing, as compared to a daily average of 2 million shares.
Why Are Natural Gas Prices Increasing?
A scramble to find more fuel has been behind the increase in natural gas prices. Specifically, Europe is seeking out more fuel as it deals with the ongoing war between Russia and Ukraine. Limits on gas from Russia have the rest of Europe struggling to fill reservoirs to keep homes warm in the winter months.
In addition to this, Russia is planning to shut down one of its pipelines to Europe for maintenance. Holger Schmieding, the Chief Economist at Berenberg Bank, recently explained to CNBC why that’s worrisome:
“On its own, a brief closure of the pipeline would not make a major difference, especially as Russia has reduced its gas exports through NS1 to 20% of capacity since 27 July anyway […] But it highlights two grave risks: (i) Russia may falsely claim that it cannot re-open the pipeline afterwards because of a ‘technical issue’ that could only be resolved if Western sanctions were lifted, and (ii) Russia may also shut down its other pipelines to Europe later on.”
INDO stock is up 43% as of Tuesday afternoon.
There’s more stock market coverage for traders to dive into below!
We’ve got all of the hottest stock news worth reading for Tuesday! This includes what has Cano Health (NYSE:CANO), Palo Alto Networks (NASDAQ:PANW) and Ocugen (NASDAQ:OCGN) stock moving. You can get up to speed on all of that news at the links below!
More Tuesday Stock Market News
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- Why Is Ocugen (OCGN) Stock Climbing Higher Today?
On the date of publication, William White 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.