Camber Energy Inc (NYSEAMERICAN: CEI) is tumbling in the market this morning. However, if you’re looking for press releases or SEC filings that led to the declines, you’re not going to find any. The truth of the matter is that CEI hasn’t released any company-specific news. However, there is a good reason for the declines. Today, we’ll talk about:
- Why CEI is falling;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why CEI Is Falling
As mentioned above, Camber Energy is having a rough day in the market today, but the company hasn’t released any news. So, what’s the deal?
The reason for the declines we’re seeing in CEI is the same as the reason that most stocks in the sector are falling. Oil has been having a rough time in the market as of late. It was just in October when experts were calling for the price of the commodity to edge up to $100 per barrell soon. However, after giving up around 20% over the past month, the price of the commodity is struggling to stay above $60 per barrel.
Unfortunately for CEI and others in it’s sector, it doesn’t look like the blues are going to go away any time soon. There are a few factors that are playing a role in the decline of oil prices that don’t seem to have an end in seight:
- Increasing Supply – With prices headed upward, production has been following as companies and governments alike work to take advantage of the gains. However, supply and demand needs to be balanced. High supply means lower prices.
- Trade War – The ongoing trade war is also affecting the price of oil. In fact, some estimate that the demand for oil will be down 20,000 barrels per day in direct relation to the trade war in the year 2019.
- Saudi Arabia’s Reaction To The Trade War – Under pressure from the Trump Administration, Saudi Arabia ramped up their production of oil to an all time high. This is bad for oil since the country is like the central bank of oil. Anything they do will have a direct reflect on oil’s price.
All of this combined means that oil is likely to continue on the decline, at least in the short term. That’s bad news for CEI as the company has built a business around the commodity.
What We’re Seeing From The Stock
Camber Energy isn’t having the best of times in the market as investors fear that further declines in oil are ahead. As a result, the stock is currently (1:38) trading at $0.16 per share after a loss of $0.014 per share or 8.17% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on CEI. In particular, we’re interested in following the story with regard to oil as a whole as any movement in oil will likely lead to movement in the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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