Oil and Natural Gas Investment Opportunities for this 2022
The war between Russia/Ukraine has opened an opportunity window for investors, because the gas and oil prices are bound to rise sharply in the forthcoming months...
Current events in mid 2022 are bound to sustain rising prices for oil and natural gas all over the globe.
The Russia/Ukraine War is making it hard to the whole word to get the oil and natural gas they need, in addition to that, the current central banking policies around the world, tightening their balance sheets and raising rates are enabling shooting prices all over the place.
As I'm writing this Oil haves been around 110 USD per barril and Natural gas around 6.5, dropping from their highest levels a couple of weeks ago.
In an uptrend, every drawdown is a new opportunity to get in, and thats what we should be looking for during this time.
Are commodity prices going to drop in the months ahead?
I certainly find it difficult, because inflation has been increasing instead of slowing down, even though the FED has been rising rates, they haven't raised them fast enough to keep inflation under control.
With supply chains disrupted, wars, COVID-19 and all the factors that are causing this massive erotion of value in the whole economy, is less likely that commodity's prices will slow down in the near term.
So it is possible that we see new records on inflation, given that the FED injected almost 45% more money into the system just 1.5 years ago.
That is to say that current conditions are uncommon, and we may be able to presence some uncommon effects too in the economy and in financial instruments too.
Oil and Gas companies are having a big and great time in this current environment!
Even the president of the US is complaning about how the energy companies are having record profit margins this year. And this condition is worsening right now for the consumer, gasoline prices are skyrocketing.
The oil price in 2022 went from around 70 bucks to the highest level at 130.50 in march.
An increase of almost 86.5% in a matter of less than four months.
Investors of the size of Warren Buffet and George soros are investing heavy on oil and energy stocks this yeay, and we are bound to do the same during this period.
Oil companies have been ejoying greater and greater profit marings and beating all analyst expectations, it looks like it's the most profitable sector during these hard times of declining markets and higher inflation.
Meanwhile Natural Gas prices SOARED to record levels at 9.66 in 2022 too more than 220% increase in the same period...
Natural Gas exploration and royalty companies have been rising like beer foam... to the top! Creating great opportunities in broadening market.
In the mean time, COAL USE HAS BEEN INCREASED MONTH BY MONTH with record price levels too, in the lack of Natural Gas from Russia to Europe, the dominnace of this fossil fuel will be absolute in the forthcoming years, producing great opportunities to buy companies focused on this kind of material.