Shares of U.S. exploration and production company Centennial Resource Development (NASDAQ: CDEV) rose a quick 8% or so in early trading Wednesday. There was no news out of the company, but there was an interesting development in the Middle East. And it had a spillover effect.
To get to the meat of the matter, this small and heavily leveraged energy company tends to be pretty volatile. Price moves in oil and natural gas often precipitate big moves in Centennial’s stock. Oil and gas prices were on the rise today, and Centennial’s stock followed along for the ride. But the reason for the oil and gas price moves is interesting.