US markets are set to open higher, with energy stocks climbing amid news that President Biden will announce an embargo on Russian oil imports. Ending Western dependency on Russian fossil fuels has emerged as a key issue from the war and Biden’s move will likely benefit Western producers but deal a heavy blow to the wallets of consumers.
Oil, gold and Bitcoin are all higher.
Here are some of Tuesday’s trending stocks:
US Energy Corp (NASDAQ: USEG)
USEG is generating buzz on Tuesday and saw its share price leap by more than 50% in premarket trading. The stock is storming higher alongside fellow energy stocks like Houston American Energy Corp. (NYSE: HUSA), Imperial Petroleum Inc. (NASDAQ: IMPP) and Nine Energy Service, Inc. (NYSE: NINE).
These companies have all seen their share prices climb amid skyrocketing oil and gas prices, which have been sent soaring by Russia’s invasion of Ukraine. Brent and WTI crude are both up by more than 5%, with prices topping $120 per barrel.
Russia is a hugely important supplier of oil and gas to the US and Europe, but escalating sanctions against the country mean suppliers are looking elsewhere for their fossil fuels.
US Well Services (NASDAQ: USWS)
While they don’t produce oil or gas, service providers like USWS are also benefitting from the huge jump in prices.
US Secretary of State Antony Blinken told NBC’s Chuck Todd: “We are now in very active discussions with our European partners about banning the import of Russian oil to our countries while, of course, at the same time maintaining a steady global supply of oil.”
Indeed, Biden’s administration now appears to be pushing for a complete ban on Russian oil imports to the US.
While this means there will be major competition for US and European fuel, it will also clearly create more demand for the services of companies like USWS, which provides high-pressure, hydraulic fracturing services in unconventional oil and natural gas basins.
The company’s shares leapt by more than 100% in premarket trading.
Hycroft Mining Holding Corporation (NASDAQ: HYMC)
If you thought the share price explosions detailed above were enormous then wait until you hear about Hycroft. The gold mining outfit has seen its share price leap by more than 220% before market open.
Excited investors are reacting to climbing gold prices and assertions from the likes of Goldman Sachs increasing its price forecasts for the commodity. The investment bank cited rising demand from investors, consumers and central banks amid the instability caused by the conflict in Ukraine.
Hycroft, which operates a mine in Nevada, has not released any specific news about its operations, so it seems as though the excitement surrounding gold is the key factor pushing its share price higher. Indeed, other miners have also seen their stock prices climb on Tuesday morning.
Norwegian Cruise Line Holdings (NYSE: NCLH)
Norwegian Cruise Line Holdings is in the doldrums, with its shares having steadily dropped by more than 20% over the last week. Investors appear concerned that conflict on the European continent could impact the summer holiday season, which is key to the cruise liner business’ success.
Additionally, NCLH and other cruise operators will feel the impact of soaring fuel prices as the West continues to seek independence from Russian fossil fuel reliance.
Fellow operators Carnival PLC (LON: CCL) and Royal Caribbean Cruises (NYSE: RCL) have also seen their share prices tumble.
Mandiant (NASDAQ: MNDT)
Finally, looking away from the impact of the tragic events in Ukraine, cyber security company Mandiant has been generating chatter on the news it will be snapped up by a tech goliath.
Google says it has agreed to buy the company for $5.4bn, with the company paying $23 per Mandiant share in all-cash deal which is expected to close before the end of the year.
Google, which is owned by Alphabet, had reportedly launched talks to acquire the company in an effort to boost its cloud security capabilities.