Gran Tierra Energy (NYSE: GTE) rose around 15% in Tuesday trading. Without any specific news tempting the bulls, the global energy shortage seems to be the key player.
Gran Tierra has seen some impressive gains this week in the face of a global energy squeeze, with crunch-conscious investors focusing on companies like Gran Tierra for their innovative direction in the exploration and production of energy.
As the industry is slowly rejuvenated back to pre-covid expectations, the markets are also reacting. More specifically, oil and gas prices have both rallied, with expectations that oil could reach $100 a barrel as we ease into the colder months.
Given the oil rally, it isn’t surprising to see energy company stock prices rising in correlation – more often than not, the link between oil and energy is paramount – which is what we are seeing in the case of Gran Tierra Energy, amongst a few others.
Since mid-august, Gran Tierra has been making steady gains, ever-increasing as panic mounts surrounding the global energy crisis. In the coming weeks or even months, Gran Tierra has the potential to continue its upside movement; if oil rises as predicted and investors continue to back further energy exploration.
This being said, all it takes is an OPEC decision to up production more than initially expected, and we could see the Gran Tierra stock price tumble quicker than it rose.
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Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.