Nicole Wachs explores why oil is up and natural gas tanking.

Here’s today’s burning question: why are oil prices and related stocks climbing while natural gas drops like a rock? As CNBC reported this morning, this development isn’t exactly intuitive, since both fuels usually trade in tandem.

Want to learn more? A good place to start might be Seeking Alpha’s natural gas primer or this explanation of the disconnect between oil and natural gas prices. TheStreet warns of hazardous trading ahead in the nat-gas sector, while The Wall Street Journal weighed in on natural gas, too.

Leading natural gas companies of interest to speculators include:
Natural Gas Services (NGS)
Piedmont Natural Gas (PNY)
El Paso Corporation (EP)
CenterPoint Energy (CNP)
Devon Energy (DVN)
Quicksilver Resources (KWK)
Newfield Exploration (NFX)

(Wikipedia’s list of U.S. natural gas companies and Bull Sector’s list of natural gas stocks might come in handy, too.)

As for leading oil stocks, that list includes quite a few major names, including: ConocoPhillips (COP)
Exxon Mobil (XOM)
Chevron (CVX)
Murphy Oil (MUR)
Petroleo Brasileiro (PBR)
PetroChina (PTR)
Valero Energy (VLO).

Meanwhile, the WSJ reports Oil Prices Climb Near $75 on nascent signs of resiliency in Chinese and U.S. demand. Again, Bull Sector’s list of oil stocks could be useful, too.

That’s the long list of research possibilities. Which specific stocks will YOU be taking a closer look at? Share your trading ideas – I’m sure other folks here would be very interested!

Regards,
--Nicole Wachs
Director of Education
All-Star Commentator


Any strategies discussed and examples using actual securities and price data are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. In reading content on TradeKing's website, you may gain ideas about when, where, and how to invest your money. Although you may discover new ideas or rationale that may be compelling, you must ultimately decide whether or not to put your own money at risk. Consider the following when making an investment decision: your financial and tax situation, your risk profile, and transaction costs.

In reading content in the Trader Network, you may gain ideas about when, where, and how to invest your money. Although you may discover new ideas or rationale that may be compelling, you must ultimately decide whether or not to put your own money at risk. Consider the following when making an investment decision: your financial and tax situation, your risk profile, and transaction costs.