U.S. equity markets have risen sharply in trading today, driven by gains in the energy sector.
Energy stocks are soaring after Goldman Sachs raised its 2016 price forecast for oil.
The fundamentals of the oil market continue to improve amid supply outages, stronger demand and a reduction in non-OPEC production. Last week, the International Energy Agency (IEA) had also released a bullish report on oil. The IEA kept its demand growth forecast for 2016 unchanged but noted that it could upwardly revise the growth figures later in the year.
The sharp recovery in oil is also helping other risk assets, including equities. In mid-day trading, all three benchmark indexes in the U.S. were trading sharply higher.
One of the major gainers on the OTC market today is Saker Aviation Services Inc. (OTCQB:SKAS). Based in New York City, Saker through its subsidiaries, operates in the aviation services segment of the general aviation industry. The company serves as the operator of a heliport, a fixed base operation (FBO) and as a consultant for a seaplane base that it does not own.
Saker Aviation shares were last trading 7.69% higher at $0.0700 on volume of 49,510, which is nearly four times the daily average volume of 13,161.
SKAS shares are gaining momentum after the company announced its financial results for the three-month period ended March 31. For the quarter, the company’s revenue was $2,967,080, up 19.3% on a year-over- year basis.
The company’s operating income for the three-month period was $373,078, up 341.5% on a year-over- year basis. The company noted that a 17.6% upturn in total fuel gallons offset lower average fuel costs, which lead to lower average fuel prices charged, to drive fuel sales revenue up 9.9%. Meanwhile, a corresponding increase in services and supply items contributed to the 19.3% upsurge in total revenue.
Ron Ricciardi, president of Saker Aviation Services, said that the Easter Holiday falling in the first quarter of 2016 and on the second quarter of 2015 clearly contributed to the year-over- year comparisons, as tourists and travelers were active earlier this year than last.
Ricciardi further said that it was particularly important to get off to a quick start in the first quarter in light of mandatory changes to the Company’s New York operations, which were announced earlier in 2016 and will begin to take effect in the second quarter.
