Shares of Sky Quarry Inc. (NASDAQ:SKYQ) are surging Thursday afternoon as energy micro-caps catch strong buying interest driven by a rally in benchmark crude oil.
- Sky Quarry stock is charging ahead with explosive momentum. Why are SKYQ shares rallying?
Crude Rallies on Saudi Production Drop and Middle East Shipping Threats
Shares of oil and gas-related companies are trading higher as crude prices climb higher above $100 per barrel after an OPEC report indicated that Saudi Arabia’s August oil production fell to the lowest level since 1990.
Also, Houthi rebel advances in Yemen may also be viewed as a risk to marine energy transport in the Red Sea.
Sustainable Crude Downstream Model Gains Visibility
The macro tailwinds provide momentum for Woods Cross, Utah-based Sky Quarry, an energy solutions firm that recycles waste asphalt shingles and remediates oil-saturated sands and soils to produce refined crude products, diesel and liquid asphalt.
Rising crude and refined product prices enhance the economic incentive for Sky Quarry’s proprietary ECOSolv extraction technology and its bitumen leases in Utah’s PR Spring region.
Q2 Financial Backdrop and Liquidity Positioning
Thursday’s surge follows Sky Quarry’s second-quarter financial report released in mid-August. While the company remains in capital-intensive build-out mode, generating annualized revenue of approximately $12.5 million against net losses, recent equity financing raised cash reserves above $7.1 million.
SKYQ Stock Explodes Thursday
SKYQ Price Action: Sky Quarry shares were up 20.22% at $3.21 at the time of publication on Thursday, according to Benzinga Pro data.
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