Tag: energy stocks

3 Energy Stocks To Load Up On In 2023

Posted on by The MarketClub Team

While it is broadly expected that the pace of interest rate hikes may be dialed down to 25-basis points, concerns over terminal interest rates being higher than expected and its effect on the U.S. economy have kept markets on edge.

With the likely less aggressive but drawn-out interest rate hikes by the Fed expected to add further stress to subdued corporate performance, the stock market volatility is expected to continue in the foreseeable future.

Hence, it could be wise for investors to increase exposure to instruments and assets whose prospects are robust enough to remain relatively unaffected by the turbulence.

Are embargoes on commodities such as crude oil effective as a political tool?

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With supply constraints due to turbulent geopolitics and extreme weather events acting to keep demand robust, global energy consumption is expected to grow by 1.3% in 2023 as many countries use fossil fuels to manage their energy transition.

Henry Hub Spot Price

Source: https://www.eia.gov/

Continue reading "3 Energy Stocks To Load Up On In 2023" →

3 Energy Stocks That Could Benefit This Fall

Posted on by The MarketClub Team

President Biden seeks to add enough supply to prevent near-term oil price spikes by releasing U.S. strategic petroleum reserves (SPR) of 15 million barrels. However, that might be offset by OPEC+’s two million barrels per day (bpd) output cuts.

Oil prices have seen significant volatility this year thanks to the Russia-Ukraine war. However, strong demand is expected to keep the energy market afloat. OPEC+ expects medium-term and long-term growth in energy demand.

According to the latest U.S. energy information administration’s (EIA) short-term energy outlook report, oil prices could get a boost from potential petroleum supply disruptions and slower-than-expected crude oil production growth.

WTI Spot Price

Source: www.eia.gov

On top of it, Goldman Sachs’ head of commodities research Jeff Currie said that crude oil prices could . In addition, he said supply could get squeezed by several factors, like a stop on SPR releases, lack of drilling, and a European Union ban on Russian oil.

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Given this backdrop, investing in ConocoPhillips (COP), Hess Corporation (HES), and Northern Oil and Gas, Inc. (NOG) might be prudent in light of several technical indicators. Continue reading "3 Energy Stocks That Could Benefit This Fall" →

3 Energy Stocks for the Rest of 2022

Posted on by The MarketClub Team

While the U.S. economy grew at a 2.6% annual rate in the third quarter, high inflation, weak third-quarter corporate earnings, and fears of another aggressive rate hike by the Fed are raising the possibility of a recession in the next 12 months.

With investors anticipating a broad slowdown, this year could be the worst year for the stock market since the 2008 financial crisis.

However, a corresponding slowdown in the energy demand can be safely ruled out due to supply-side constraints caused by the conflict between Russia and Ukraine and OPEC+’s decision to cut oil production by 2 million barrels/day.

How soon do you think Brent crude will return to $100 per barrel?

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According to the short-term energy outlook released by the U.S Energy Information Administration, the U.S. residential price of electricity will average 14.9 cents per kilowatt hour in 2022, up 8% from 2021. Higher retail electricity prices largely reflect an increase in wholesale power prices, driven by higher natural gas prices.

US electricity generation by source

Source: www.eia.gov

Besides, energy demand is expected to grow in the long run due to increased economic activity and the effects of climate change. The global energy as a service market is projected to grow at a 7.6% CAGR to reach $112.7 billion by 2030.

Hence, it would be opportune to load up on energy stocks ConocoPhillips (COP), Murphy Oil Corporation (MUR), and Tidewater Inc. (TDW) as some technical indicators point to their upside. Continue reading "3 Energy Stocks for the Rest of 2022" →

Should Energy Stocks Be On Your Bargain-Hunting List?

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Everyone's bargain list just got a LOT longer. Energy stocks can finally stop feeling so lonely. They have plenty of company now.

If you've (hopefully) followed Adam Hewison's posts, he illustrated on Monday that it's not yet safe to start acting on your bargain list, as far as stocks are concerned. The broad-market long-term trade triangles are (obviously) flashing red right now, and Fibonacci indicators don't show support for this falling knife until much lower levels.

Adam specifically touched on crude oil in his Tuesday post, saying its RSI is very oversold and flat, and combined with a falling market, one would expect a bottoming out at some point. "Not to say it can't go lower," he added.

So even though your bargain list might be just that – a "watch list" – let's begin looking at whether to even consider energy.

A brief look back

Remember $108 oil, back in the summer of 2014? WTI crude has already traded as low as $38.00 this week, and looks as though it's unlikely to return even to the $60s – in a sustained way – for perhaps many years. In fact, a dip into the $20s seems at least equally likely at this point, given the supply glut combined with the newfound volatility and fear across all markets.

So oil has shed about 65% so far, and has generally held below $60 for all but 14 days since falling below that level 9 months ago. And, of course, oil's plunge has taken the value of most oil companies with it. Feast your eyes: Continue reading "Should Energy Stocks Be On Your Bargain-Hunting List?" →

What's a "YieldCo"? (Hint: It's Green)

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Quick: Name as many energy stocks as you can that fit these criteria:

  • Better than 12% annualized total returns over the past 5 years
  • Positive returns over the last 12 months
  • Greater than 3% dividend yield
  • Currently trading 5% or more below its own 52-week high

There aren't very many. A handful of NYSE-listed pipeline companies make the cut, including these: Continue reading "What's a "YieldCo"? (Hint: It's Green)" →