Welcome to the Energy and Capital Weekend Edition — our insights from the week in investing and links to our most-read Energy and Capital and sister publication articles.
This week’s gain for oil and gas stocks across the board was a welcome sight.
But let’s be honest, were we really surprised by our gains?
It all started on Tuesday, when the EIA released its latest Short Term Energy and Winter Fuels Outlook. At first glance, the news wasn’t spectacular. Their projected household expenditures for space-heating fuels fell by 8%, compared to last winter. The reason: lower fuel prices.
Here are some highlights from the report:
The EIA has increased its projection for the world’s oil consumption by 200,000 barrels. This is the third straight month the EIA has had to revise its 2010 demand outlook.
Despite the higher demand projection, the EIA’s price forecast remains unchanged, due mostly to supply levels in the market.
Natural gas inventories are expected to set a new record high by the end of 2009. The average Henry Hub spot price is projected to increase from $3.85/Mcf in 2009 to $5.02/Mcf in 2010.
U.S. marketed natural gas production is expected to increase by 1.5% in 2009 and then decrease by 3.8% in 2010.
One day later, prices jumped after the EIA released its oil inventory report. Inventories of crude oil fell this week by one million barrels. News of the inventory build pushed oil prices as high as $71.97 per barrel.
More on that in just a minute. . .
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In case you’ve missed any of our top stories this week from Energy and Capital and our sister publications, we’ve included them here:
Canada’s Best Bakken Stock: The Other Side of the Bakken
Energy and Capital Editor Keith Kohl reveals one of the only pure-play Bakken Stocks available to investors.
The Louisiana Land Rush: The Largest Gas Discovery Just Got Bigger
Times are tough during this recession. However, one small town in Louisiana has been practically immune to the economic turmoil gripping the nation. . . and these four natural gas stocks are behind their immunity.
Solar Stocks for 2010: Delivering Next Year’s Winners. . . Right Now
Energy & Capital Editor Nick Hodge shares his top solar stocks for 2010.
Investing in Combustible Ice: The Role of Flaming Ice as an Energy Solution
Wealth Daily‘s Christian DeHaemer talks about methane clathrate’s potential as a future energy source and the compound’s effects on climate.
Roubini, Soros and Prechter… Oh My: Too Hot They Say
Wealth Daily‘s Steve Christ comments on a Bloomberg story this week: "New York University Professor Nouriel Roubini said stock markets may drop and billionaire George Soros warned the ‘bankrupt’ U.S. banking system will hamper its economy, highlighting doubts about the sustainability of the global recovery."
The "R-Track" Investment Strategy: A New Way to Trade for Gains
Are your investments making you 32% every month? If not, you might want to reevaluate your stock-picking process. Green Chip‘s Nick Hodge offers a brand new trading strategy that’s making readers a small fortune, even as you read this.
Canadian Wind Energy: Plutonic Power and Enbridge, Canadian Energy’s Odd Couple
Editor Sam Hopkins reveals the key players behind a massive expansion of Canadian wind energy investment and capacity.
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Unfortunately, the rally couldn’t hold. By Friday, traders began taking their gains off the table. So what happened to oil’s rally? For starters, news from the Fed’s head honcho, Ben Bernanke, was that monetary policy would be tightened as the economy improves.
Investors shouldn’t feel left out in the dark. The fact is we’re going to see a huge upside in natural gas this winter. If nothing else, this sell-off gives us a perfect opportunity to strengthen our positions.
Enjoy your weekend,
Keith Kohl
