Tengasco, Inc. (NYSEMKT: TGC) is off to an overwhelmingly strong start to the trading session today. Throughout the morning, the stock has been on a strong upward spike. The reason for the gains surrounds gains in oil. With the excitement causing such strong movement, our partners at Trade Ideas were the first to alert us of the trends. At the moment (9:59), TGC is trading at $0.97 per share after a gain of $0.32 per share or 49.25% thus far today.
Why TGC Is Flying
Ultimately, the gains on Tengasco have to do with oil, a commodity that the company has essentially built its business around. Today, oil is climbing after an announcement from the United States that it has started to launch air strikes on Syria.
This is a huge announcement for the oil industry as any turbulence in the Middle East has a tendency to have a profound effect on oil prices. The idea here is that the air strikes will reduce production from the region, leading to gains in oil. Because TGC has centered its business around oil, it will enjoy the gains as well.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TGC and the entire oil industry. With the news of escalated geopolitical concerns in a region that is responsible for a massive amount of the world's oil, it's possible that we're only seeing the tip of the iceberg. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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