Sky Quarry Inc. (NASDAQ:SKYQ) stock is trading higher on Tuesday morning amid rising crude oil prices and a recent increase in the company’s short interest. The Nasdaq is down 1.42% while the S&P 500 has shed 0.36%, making SKYQ’s strength stand out against a softer tape even as energy leads with a 1.67% gain.
Zooming out, the energy sector has been in a drawdown recently, down 7.47% over the past 30 days and down 7.02% over the past 90 days.
Strait of Hormuz Disruptions
Oil and gas-related shares gained after reports indicated multiple commercial ships were struck by Iranian forces in the Strait of Hormuz.
Crude oil rose more than 2% to above $70 per barrel on Tuesday. At least one vessel reportedly ignored warnings from Iranian forces, though Iran did not officially claim responsibility for the attacks, according to CBS News.
The shipping incidents renewed concerns regarding the durability of the global energy supply. Tensions increased after Iran’s top diplomat stated Tuesday that Tehran would not resume negotiations if U.S. threats continue, following comments from President Donald Trump that the U.S. would “finish the job” without a peace deal.
Short Interest Increases
Short interest for Sky Quarry increased from 327,120 to 467,520 shares during the last reporting period. This represents 10.25% of the company’s publicly available shares. Based on an average daily volume of 4.43 million shares, short sellers would require one day to close out positions.
Nevada Production Ramps
The development-stage refining company launched a drilling initiative in Nevada’s Railroad Valley earlier this June. Sky Quarry announced that it is preparing to begin production at its Foreland Refinery in Nevada this July, utilizing 10,000 barrels of on-site inventory and 100,000 barrels of storage capacity.
SKYQ Stock Price Activity: Sky Quarry shares were up 26.18% at $2.67 at the time of publication on Tuesday, according to Benzinga Pro data.
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