Now's a perfect time to buy into our favorite natural gas stock, as another part of the energy sector continues to slump…
You see, while energy stock bears point to the dismal performance of oil stocks as a reason to leave the sector entirely, they're wrong.
It's true oil stocks have been hit hard. Oil prices have tanked since June, down 21%. WTI and Brent crude both hit multi-year lows this month.
U.S. oil drillers like EOG Resources Inc. (Nasdaq: EOG) and Continental Resources Inc. (NYSE: CLR) have fared poorly despite surging production. Those two stocks are down 18% and 26% respectively from summer highs. Even Exxon Mobil Corp. (NYSE: XOM) stock is down 9% since June.
But while prices dip in the crude oil market, Money Morning's Global Energy Strategist Dr. Kent Moors predicts natural gas prices will climb as we reach the winter months.
"With natural gas, the NYMEX price was above $4 per 1,000 cubic feet
(or million BTUs) in early October," Moors said. "As we move into a
winter heating cycle, that should push prices closer to $4.50."
Natural gas at $4.50 would be an increase of nearly 23% from today's price of $3.65 per million BTUs. (more)
Please share this article
globaleconomicanalysis.blogspot.com / Mike “Mish” Shedlock / October 29, 2014
Inquiring minds may wish to slog through today’s FOMC Press Release on Monetary Policy but it’s really not worth the time it takes to read it.
Here are a few details, generally expected
- The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program.
- The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate.
- The Committee anticipates, based on its current assessment, that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program this month, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.
- If incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.
- The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
The Fed also released a Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities.