What happened
Shares of Clean Energy Fuels (CLNE 4.53%) jumped as much as 19.7% in trading on Monday as clean energy stocks had another strong day. Some of the bounce was given back late in the day, but shares closed up 10.5%.
So what
There wasn't any specific news out from Clean Energy Fuels today. But there was some positive news from the energy industry. Oil prices were up about 1% on Wall Street and natural gas was up 6.9%.
Image source: Getty Images.
Natural gas is an input fuel for some of Clean Energy Fuels' business, but it's also a competitor to renewable fuels, which management hopes is the company's future. In that sense, the rise in commodity prices is a long-term opportunity but a short-term headwind.
Now what
There's not really enough today to change your investment thesis in Clean Energy Fuels. Commodity prices rise and fall and normal volatility is exactly what we're seeing today.
We need to remember that clean energy stocks have been both volatile and on a strong run the last few months. Today does seem to be a continuation of that exuberance. But it may not last and we shouldn't be surprised if these gains are given back again tomorrow, even if there's no new news about the stock.
