CANO - Indonesia Energy (INDO) Stock Soars as Natural Gas Prices Spike
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Indonesia Energy (NYSEMKT:INDO) stock is rising higher on Tuesday alongside the increasing price of natural gas.
And it’s not a small increase, either. The price of natural has spiked to $10 per MMBtu this morning. That marks the first time natural gas has hit the 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 are rising today alongside incredibly heavy trading. This saw 43 million shares traded 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 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, explains 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 42.9% 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! Among that is 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
- What Is Going on With Cano Health (CANO) Stock Today?
- Palo Alto Networks (PANW) Stock Pops 10% as Earnings Impress
- Why Is Ocugen (OCGN) Stock Climbing Higher Today?
On the date of publication, William White 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.
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