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Sky Quarry Rally Stalls as Oil Pulls Back

Fresh doubts about the rally highlight how fast geopolitical oil swings can whipsaw thinly traded energy stocks.

Overview

  • Sky Quarry shares slipped in premarket trading to $11.23 as crude retreated to about $96.73 after Vice President J.D. Vance signaled a possible path to talks with Iran.
  • The setback follows a spike of more than 200% earlier this month after President Trump accused Iran of restricting oil flows through the Strait of Hormuz and futures jumped roughly 2.3% to about $100.
  • Investors zeroed in on the company’s small Foreland Refinery in Nevada as regional fuel capacity tightened, and management says it is discussing local crude supply deals.
  • Technical gauges still flash stretched conditions, with the stock far above its 20- and 100-day moving averages and the relative strength index near 78 to 81.
  • The finances remain fragile, with an EBIT margin near minus 72%, a debt-to-equity ratio of 3.57, and only $35,370 in cash, and most observers describe the surge as speculative.