2021 marked a great year for Allied Energy Corp (OTC:AGYP), the company has been reaping the fruits of its labor, good news has been raining down on AGYP for the past couple of months. From surging oil prices to pumping oil from 5 sites, AGYP stock price per share has increased a whopping 588% in value since the beginning of the year. As oil demand continues to heat up across the country, domestic oil producers like AGYP are bound to play a more central role in US oil independence, and with the forecasted increase in oil prices throughout the next year, AGYP could achieve noticeable progress in its growth plans and become one of the best oil stocks.
AGYP Stock News
On the onset of 2020 and Covid-19 causing lockdowns all over the world, in March 2020 the global oil industry reached an all-time low as demand fell by almost 30 million barrels a day. Fast forward to 2022 – the pandemic effects are starting to wear out and the industry is on track to hit $2.1 trillion in revenue by the end of this year.
The growth in the global oil industry market is a result of companies including AGYP and many others, returning to their operations and production levels from the pre-pandemic era. Most companies did not completely shut down their operations but with remote working and social distancing, companies faced a lot of challenges that affected their productivity.
On that note, the secretary-general of the International Energy Forum – Joe McMonigle – said that the two years of huge cuts in production are leading the world to an energy supply shortage that could disrupt many economies. Veteran industry analyst – Phillip Streible – also commented on the supply shortage saying “we have 432 million barrels. The five-year average is 460 million, so supplies are quite tight.” and he emphasized that “any small supply shock would send prices higher”. The industry leader is expecting prices to be $85 to $90 per oil barrel in 2022.
For years, AGYP has been acquiring and reworking existing oil and gas reserves throughout the US. However the company is constantly on the lookout for strategic abandoned lease sites, but to date, its most profitable sites are the Green Lease and Annie Gilmer sites.
According to an engineering and economic evaluation of the sites’ reserves, the Green Lease site holds $2,944,900 of proved oil and a total of $18,536,600 for both probable and possible oil. On the other hand, the Annie Gilmer site holds $6,704,900 in proved oil and gas reserves with $5,489,900 in probable and possible reserves.
However, the company’s latest acquired lease site might be its biggest investment yet. Known for its 28 Unit Well 1H – which historically produced around 200 barrels of oil and 300 thousand cubic feet of natural gas per day – the 325-acre Prometheus Lease site in Texas is already showing a lot of potentials. This site among other successful sites of AGYP will help build the company’s growth and make it one of the best oil stocks.
AGYP is affected more by the domestic market which experts are divided on where it’s headed. Barclays changed its prediction of oil prices in 2022, it now forecasts that the WTI contract price will reach $77 or even higher as the bank believes that the country’s recent oil release from the Strategic Petroleum Reserve isn’t a sustainable way to decrease prices and eventually prices will go up again. Whereas, the US Energy Information Administration (EIA) predicts that by Q4 of 2022, the oil prices will drop $7 and reach $62 per barrel.
Media Sentiment
With the anticipated increase in oil prices, investors including @snowieluvsotc are excited to hold one of the best oil stocks in the OTC – AGYP – going into 2022.
Technical Analysis
Following a 588% increase in 2021, AGYP is currently trading at $.26 near its support of $.2593. AGYP stock has a weak resistance at $.3049 which it broke through on news previously. While the RSI and the MACD are stable and don’t tell us much, the Accumulation indicator says it all. As you can see, despite the price more or less fluctuating along the channel created by the support and resistance, the accumulation has been growing rapidly even during times where the PPS fell.
So what does this tell us? Investors are holding on to their shares and/or keeping adding more shares during price dips. Usually, this happens in 2 cases, either someone knows something big is coming – in which case as the old adage goes follow the money or shareholders see value in this stock as a long term and are unconcerned about daily price fluctuations.
In either scenario, this is a very bullish signal in our opinion based on what the technical indicators have to say. As always, if you are looking for an entry on AGYP, buy at support as it is a long hold play, and as luck would have it – the stock is currently trading at its support.
AGYP Stock Forecast
Last fall, AGYP stock witnessed a 46% increase, proving that the company shows significant results when the oil market is on an upwards trend. Trading around its support again could mean that the stock could have a similar rally based on the anticipated increase in oil price throughout 2022 and reach $.3866 or surpass it and reach its YTD high at $.8172 and become one of the best oil stocks in the market.
It’s also worth noting that AGYP has been consistent in its updates to shareholders throughout the year. The company routinely releases videos of its progress at the Green Lease, Prometheus Lease, and Gilmer Lease sites.
If you have questions about AGYP stock and where it could be heading next feel free to reach out to us in our free alerts room!
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