Oil prices continue to rise at alarming rates amidst the global economic recovery. Now, US oil prices have reached their highest price in 7 years, surpassing the $80 mark. While this is bad news for consumers, it is one of the biggest catalysts to hit the oil market and the anticipated surge in oil stock prices is making them some of the most trending stocks today. As tensions grow between the US government and OPEC+, domestic oil producing companies are becoming center stage. Allied Energy Corporation (OTC: AGYP) is one such example, shooting up 30% on Monday morning before closing up 13% despite a generally red market.
An energy crisis is gripping the world’s largest economies as the supply remains significantly below demand. The conservative OPEC+ production numbers come as a reactionary measure to the collapse in oil prices at the beginning of the pandemic. Despite warnings by large organizations such as Goldman Sachs that oil might soon reach $90 a barrel by the EOY, OPEC+ representatives continue to stress that the price surge is not significant enough to change course.
Meanwhile AGYP has continued making significant progress at their two domestic oil production sites. Recently sharing videos for their Green Lease Site, AGYP’s onsite team have installed pumpjacks and a saltwater disposal well. This was in accordance with the Texas Railroad Commission which recently observed the H-5 Casing integrity test on the Green lease saltwater Disposal Well. This is an important step forward for the company which must be able to pump down the water in order to publish fairly accurate barrels per day estimates.
Clearly OPEC’s firm stance will continue helping domestic oil producing companies like AGYP as long as the Biden administration remains at odds with OPEC. The demand for domestically sourced oil will likely skyrocket which is good for AGYP as its recent report revealed considerable petroleum estimates for both sites.
According to the report’s results, the Green Lease site is believed to have 229,400 “probable” barrels of oil and 448,000 “possible” barrels. While the Annie Gilmer is expected to have 80,400 “probable” barrels of oil and 135,500 “possible” barrels of oil.
AGYP has witnessed an over 500% increase since the beginning of 2021. With this progress in mind, AGYP’s CEO George Montieth shared that “Allied is now on the cusp of becoming a producing oil company”. But the volatile global energy situation remains a significant catalyst for AGYP and will continue making oil stocks some of the most trending stocks today.
Amidst all of this, AGYP uploaded three videos on September 8th, showing their work on the Green Lease project. Each video proved that AGYP is not all talk and investors’ excitement peaked with this information. In the days following, AGYP’s share value rose rapidly thanks to bullish investors. Its stock will likely continue to play in sympathy with oil demand and market fluctuations which is an important catalyst for investors trading AGYP.
An explosion is imminent indeed as @LadeBackk points out. Oil stocks are bound to hit all-time-highs!
Currently trading at $0.3312, AGYP has a resistance line at .4283. The primary support line lies at .3097 and its secondary support lies at .3003. There has been a slight dip in accumulation recently, however the MACD remains strong after recently witnessing a bullish crossover. The RSI currently stands at 61.79.
Should You Buy?
With a seemingly firm position by OPEC+, and a global shortage in oil production, investing in AGYP seems to be pretty straightforward as oil stocks being the most trending stocks today. With oil production well underway on AGYP sites, and domestic oil demand rising, AGYP stock is likely to rise. However, it is important for investors to note that the oil sector comes with high volatility. AGYP has been having a tremendous year, with a rise of over 500%, and is likely to hit its resistance line very soon.
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