Despite continued rising demand pressures from emerging markets, many natural resources still operate on a cyclical bias. For example, natural gas demand and prices generally rise in the winter as more people begin to heat their homes. Conversely, when the weather is warmer, natural gas supplies build and prices drop. For investors or traders, using commodities’ various seasonal and cyclical patterns can prove profitable [for commodity news and analysis subscribe to our free newsletter].
The global oil and gas industry is enormous, and serving the endless global appetite for oil and gas has propelled many companies into the realm of the mega-caps. Were they independent entities, the revenues of companies like Exxon Mobil (XOM), BP (BP) and Royal Dutch Shell (RDS.A) would be such that they’d be among the 30-largest countries by GDP. Not surprisingly, that makes them highly significant stocks as well [for more oil and gas news and analysis subscribe to our free newsletter].
The bull train continues full steam ahead on Wall Street much to the bears’ growing frustration. Major equity indexes are still relentlessly climbing higher, posting fresh multi-year highs by the day it seems. Every minor pullback on the stock front has welcomed buyers, showcasing the sheer euphoria permeating the marketplace, which is rightfully making some worried that a steep correction is lurking just around the corner. Commodities overall continue to drift lower as the strengthening U.S. dollar is keeping a lid on spot prices [for more market news and analysis subscribe to our free newsletter].