Oil And Gas Penny Stocks

The penny stock market is a game fraught with difficulty. Compounded with the energy industry’s recent instability in the wake of the GF, investing in oil and gas penny stocks is a doubly risky enterprise. Stocks under $5.00 USD comprise a volatile market sector subject to fraud and sparsely watched by market analysts.

Larger brokerages tend to ignore penny stocks, considering them high-risk and not worth the worry. This can lead to opportunities in the penny stock sector, but it also heightens the chance of purchasing husk stock, or empty interests subject to price manipulation.

In the world of finance oil and gas comprise a huge slice of the global commerce market. With the industrialization of new sectors the world’s energy production and speculation market is continually growing.

Major companies pour billions into maintaining and expanding production of oil and gas, and hundreds of countries initiate bidding wars year-to-year between production companies, banking on surveyors finding oil inside their borders. Oil and gas supply thousands of jobs, billions in national revenues, and immense export potential.

Geopolitically, exporting regions like Africa, South America, and the Middle East daily supply huge quantities of oil and gas to importing sectors like North America, India, China, and Europe’s more heavily industrialized areas.

Economic and political security concerns are widespread over the issue of international energy trade. Tension between importers looking to control trade deficits and lock down dependable supplies of oil and exporters seeking to capitalize on their situation to.

These international concerns create a culture of unreliability for price projections on gas and oil stocks in general, and for their penny incarnations in particular.

Expansion is the name of the game, but is that good or bad for penny stocks? Almost all market analysts, from Bloomberg to the hordes of fiscal bloggers, agree that oil and gas is a struggling industry, and also an unfriendly one to startups and small concerns.

With the big boys competing for contracts and hunting for opportunities to expand, there’s not much room for penny ante investing. Any stocks that do crop up are subject to early extinction, devaluation, and default. That kind of risk carries serious consequences.

With explosions in business throughout the industrializing world, particularly the Chinese and Indian markets, success in the oil and gas arena carries considerable rewards. Market gains for penny stocks represent a chance at strong dividends.

Even the American Petroleum Institute (API) has performed strongly through the global financial crisis of 2008, and while politically controversial their expansion and assistance in America’s emergent energy independence has been considerable. Representing over 400 oil and gas concerns they’ve managed to put a slick veneer of success on a troubled market.

Not broadly traded, most penny stocks represent a significant risk to investors. More market research is available on the fairly small field of oil and gas penny stocks, but Penny energy (especially oil and gas) stocks like Abraxas Petroleum, Royal Energy, and United States Oil & Gas have demonstrated strong potential for continued growth over the last few fiscal years.

Typical pricing for oil and gas penny stocks range from $0.34 to $4.49 USD, and they’ve trended upward when they do survive their infancy.

Penny stock trading, especially in energy, is a chancy endeavor and should be treated as such. The services of a dependable brokerage, as well as private research, are highly recommended should you wish to engage with the penny stock trade in oil and gas.