Natural gas is one of the most popular commodities in the world and it often ranks among the CME Group’s most traded futures contracts; however, the commodity had been stuck in a rut since the 2008 recession before it finally saw some relief as 2013 opened. From natural gas’s peak to the beginning of the year, the fossil fuel had declined by more than 92%, as a number of macroeconomic factors weighed on the commodity. Just as it finally picked up steam in 2013, NG sputtered into May, dipping more than 9% through the first week of the month [for more natural gas news and analysis subscribe to our free newsletter].
It’s been an interesting time for investors in the natural gas space. As hydraulic fracturing and horizontal drilling have become the extraction method of choice for E&P firms, production of the fuel has skyrocketed and led to a surplus of supply and high storage inventories. The huge surpluses have combined with slack demand for the fuel, causing prices to crater. At one point they were below $2 per MMBtu [for more oil news and analysis subscribe to our free newsletter].
Crude oil has been among the worst-performing commodities this year as hefty production has combined with a number of other factors to send the fossil fuel lower. That being said, a number of bellwether oil firms will be detailing their most recent quarter’s earnings this week, as investors are anxious to see how lower prices have impacted bottom-line returns. Below, we outline five of the biggest oil firms to report earnings this week, and commodity investors should watch them closely [for more oil news and analysis subscribe to our free newsletter].
With the largest single day drop in gold prices dominating the headlines, many consumers have overlooked crude oil’s significant fall in prices as of late. Even without the decline earlier this week, crude has been relatively weak as of late, with few expecting this to change soon. It seems that the pressure keeping prices at bay is only expected to rise in the coming months and years as this commodity may be slowly losing its dominance [for more oil news and analysis subscribe to our free newsletter].
High daily volumes coupled with erratic and sometimes unpredictable movements have given natural gas a big name in the commodity world, along with a reputation as a risky investment. With NG jumping more than 20% year-to-date and still climbing, many analysts are looking for a spark behind these gains, and they’re wondering how long the trend will last [for more natural gas news and analysis subscribe to our free newsletter].
In the world of oil and gas investing, big names like Exxon Mobil and Chevron are usually what come to mind, as these mega-companies seem to dominate the industry. There are, however, a small subset of companies that have certainly solidified their place in many investors’ portfolios: independent oil and gas. While the market capitalization of these companies may be small, their attractive returns and growth potential warrant a closer look [for more oil and gas news subscribe to our free newsletter].