Tag Archive | DVN

Three Forces That Could Ignite Natural Gas

Despite being sidelined for the most of the first half of the year, weather conditions, supply and demand imbalances, and Congress could lead to an opportunity in natural gas.

According to the National Weather Service, the next few months are expected to be warmer than usual, with average temperatures being above normal by 2 to 3 degrees across the nation.  What this means is that consumers will likely run their electric powered air conditioners more often and for longer periods of time.  This further translates to increased demand for electricity, which has a domino effect and increases demand for natural gas.  Read More…

ETFs For Amplified Energy Markets

By Kevin Grewal

As the global population continues to expand and purchasing power in developing nations increases, the world’s appetite for energy is likely to amplify painting an opportunity for investors.

According to the Energy Information Administration (EIA), average consumption of crude oil is expected to increase to 1.5 million barrels per day, up nearly 300,000 barrels per day from its previous forecast of 1.2 million barrels per day.  This uptick in demand is primarily being driven by expected economic growth in the Asia-Pacific regions and the Middle East as well as a more optimistic domestic economic outlook.

Additionally, the EIA has stated that it expects the average price of a barrel of crude oil to average a price well north of $80/barrel, which is being supported by an increase in demand and the decision by OPEC to curtail any increases in production.  These price pressures has further lead the EIA to forecast the average price of a gallon of gasoline in the U.S. to hover around $2.35/gallon for 2010, an increase of nearly 21% from a year earlier.  Read More…

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