Petroteq Energy Inc (OTCMKTS: PQEFF) On The Comeback Trail

Petroteq Energy Inc (OTCMKTS: PQEFF) is about to turn bullish on an uptick in oil prices to the $70 a barrel level. The stock has bottomed out, in what appears to be a change in the direction of trade after succumbing to bearish pressure in 2018 and early this year,Petroteq Energy Price Action AnalysisA spike in trading volume, as well as share price, signals renewed investor interest after the underperformance of the first quarter. May has turned out to be an inflection month as the stock has rallied by more than 40% on huge turnover of traded shares.The stock rallying from the brink of collapse comes on the heels of the company signing an agreement for the acquisition of an additional 50% of operating rights relating to oil sands under U.S federal oil and gas leases.A spike in oil prices, in recent weeks, also appears to be fuelling the upward momentum as a number of energy stocks have edged higher. Given that the company produces in excess of 500 barrels a day, it remains well positioned to generate significant revenues as oil prices flirt with highs of $70 a barrel.The stock is already back to where it started the year at, as the upward momentum continues to gather steam. Standing in the way of further upside action is the $0.40 resistance level, from where the stock plunged before recording new all-time lows. PQEFF Daily ChartA rally past the critical resistance level should reaffirm Petroteq Energy breakout credentials setting the stage for it to make a run for the $ 0.60 level. Failure to take out the resistance level on the other could result in the stock trading sideways as has been the case for the better part of the year.About Petroteq EnergyPetroteq Energy is an integrated oil and gas company focused on the development and implementation of proprietary technology for oil extraction. The company engages in tar sands mining and oil processing activities, using closed loop solvent-based extraction system.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0[/embed]Why is Petroteq Energy Surging?Shares of Petroteq Energy are surging in the wake of oil prices edging higher following the standoff in Asia pitying Saudi Arabia and proxies believed to be from Iran. Oil prices have in the recent past settled at highs of $71 a dollar after a key pipeline in Saudi Arabia was hit by explosive-laden drones.The attack which comes days barely, after a number of ships were attacked in the region has fuelled concerns of a potential shortage in oil supplies, should tension in the region escalate.Oil prices have continued to surge on the organization of Petroleum Exporting countries warning that demand for oil could be much higher than supply this year.High oil prices are always a good thing for oil producing companies such as Petroteq Energy as it allows them to generate significant returns from their supplies into the market.Oil Sands Stakes AcquisitionsPetroteq Energy market sentiments have also inched higher, consequently fuelling a spike in share price, on the confirmation it has acquired additional stakes in oils sands under U.S Federal oil and gases. The additional leases encompass 8,480 acres in the State of Utah.

“This acquisition is part of the Company’s strategy of acquiring oil sands resources and opportunities in the State of Utah, including federal leases covering lands and areas that have been designated “Special Tar Sands Areas” by the U.S. Government,” stated the Company’s CEO David Sealock.

The leases acquisition comes at a time when Petroteq Energy has ramped up oil production activities to a point where it is able to produce as much as 500 barrels a day. Increased production affirms the commercial viability of the company’s mining technology that continues to enhance its competitive edge when it comes to clean extraction of oil sands.Petroteq Energy is among the few companies capable of producing oil from the bitumen oil sands resource in Utah. The company has already produced as much as 10,000 barrels from the Asphalt Ridge.Bottom LinePetroteq Energy market sentiments should continue to edge higher as oil prices continue to rise. The company ramping up oil production using a one of a kind mining technology points to an exciting period on revenue generation. As it stands, the stock is on its way out of multi-year lows and the worst looks to be behind for the company and its shareholders.We will be updating our subscribers as soon as we know more. For the latest updates on PQEFF, sign up below!Disclosure: We have no position in PQEFF and have not been compensated for this article.