Last week had colder-than-normal weather, a positive for propane companies such as AmeriGas Partners (APU), Ferrellgas Partners (FGP), and Suburban Propane Partners (SPH).
Natural gas prices are especially affected during the winter. Cold weather has been a major factor in the natural gas price rally over the past few weeks.
This week saw NGL prices trade up by 5%, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June, a positive medium-term indicator.
WTI continued its rally last week on bullish inventory figures and speculation around a slowing of Fed tapering given weak jobs numbers.
Natural gas prices fell last week, mostly on forecasts of incoming milder weather. The front month contract for natural gas closed at $4.78 per MMBtu.
This week’s drop in natural gas inventories was slightly lower than the market’s expectation, which indicated either weaker demand or stronger supply than expected.
On February 5, the DOE reported an increase in crude oil inventories of 0.44 million barrels—much lower than analysts’ expectations of a build of 2.27 million barrels.
Halliburton posted 4Q13 adjusted EPS of $0.93 compared to consensus estimates of $0.89 (excluding after-tax restructuring charges of $0.03 per diluted share).
Natural gas producers will see upside from the colder winter, as it has helped to boost natural gas prices.
Weather so far this winter has been colder than normal. This is a positive catalyst for propane distributors’ earnings.
Crude oil prices have remained buoyant lately, with last week’s rally mostly driven by higher-than-expected U.S. GDP growth.
Despite milder-than-normal weather during the week, natural gas prices rose from $4.05 per MMBtu to $4.33 per MMBtu last week.
Investing in individual upstream energy stocks with significant crude oil production and assets also provides exposure to crude oil prices.
Shorting crude oil ETFs or purchasing some inverse ETFs can provide exposure to downside movements in crude oil prices.
Natural gas–weighted upstream energy stocks and certain ETFs can also provide exposure to rising natural gas prices.
One way to invest in natural gas is through ETFs focused on tracking price movements in the commodity.
Futures contracts are the most direct method of investing in oil and natural gas price movements, but may not be appropriate for individual investors.
Natural gas prices have rallied over the past few months while crude prices have dropped from recent highs.
Other precious metals are often consumed in industrial processes, and yearly quantity supplied can be outstripped by the quantity demanded
There is often a debate among academics, financial gurus, asset managers, and advisors as to the place for non-traditional assets in a portfolio.