Natural Gas Glut About to Clear And Prices Rise
For most of 2016, we searched for value in oil stocks,
while ignoring natural gas. I'm still a big bull on oil stocks, but I
see value in natural gas stocks as well coming at certain times in 2017.
One of those moments, I believe, is now.
We had an interesting end for natural gas in 2016, as prices spiked
overseas, sent higher with the intensity of the cold weather in Europe.
While the Arctic has experienced one of the warmer starts to the winter
on record, that has boomeranged into historic cold that began in the
Siberian plains and has been sweeping westward through Eastern and
Western Europe. The big move upwards in European natural gas prices
definitely inspired a major influx in speculative buying, marking one of
the most overall bullish positioning in U.S. natural gas futures we've
seen since 2014.