Stocks Would Be Better Served By A Pullback In Gasoline ETFs

Tom Lydon submits: Oil prices and related exchange traded funds slid as crude oil falls below the three-digit mark. However, higher consumption of electricity pushed natural gas prices higher.

This post is a guest contribution by Dian Chu, market analyst, trader and author of the Economic Forecasts and Opinions blog.Just in time for Christmas, On Wednesday, Dec. 22, U.S. gasoline prices hit an average $3 a gallon for the first time in more than two years, according to AAA’s Daily Fuel Gauge Report. Meanwhile, U.S. stocks and oil also climbed to the highest levels since 2008.

The two-week flirtation with silver engaged in by my ETF Pullback strategy (see Appendix below for details and performance information) is over, at least for now. The idea of this technical model is to look for recent corrections in the context of major uptrends, and play the prospect of the correction’s end. Here’s this week’s list :

Kevin Grewal submits: As global demand for crude oil continues to increase to record levels and supply remains constricted, the price of gasoline continues to itch upwards, passing the $3 per gallon mark in October and giving support to the United States Gasoline Fund (UGA), the PowerShares DB Energy (DBE), the iShares Dow Jones US Oil & Gas Ex Ind

No, your eyes aren’t deceiving you – today’s headline is correct. The price of oil is set for a dip lower – one way or another. Today I’ll show you why. I’ll also explain why it’s not the end of the world for oil investors – quite the opposite actually! And I’ll share my thoughts on playing oil in the next six months… You’d have to admit from a fundamental standpoint $95 oil is a little high, especially if U.S. crude storage (as of last week’s data) is at its highest level since 1931.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.This post is a guest contribution by Dian Chu, market analyst, trader and author of the Economic Forecasts and Opinions blog.

North America’s shale fields are the most visible symbol of the energy revolution, but they tell less than half the story. An even bigger transformation is taking place in the engines and fuel tanks of cars and trucks across the United States. High oil prices, recession and tougher fuel economy standards have combined to cut 5.5 million barrels per day from projected U.S. oil consumption in 2020, according to an analysis of forecasts published in recent years by the U.S. Energy Information Administration (EIA).

A surge in U.S. oil production has pushed the country’s output to the highest level since 1992, threatening the dominance of the Organization of Petroleum Exporting Countries. The U.S. pumped 7.06 million barrels a day in the week ended Feb. 8, up 1 percent from the previous week and extending last year’s 19 percent gain, the Energy Information Administration said today. OPEC production fell to the lowest level in a year in January, the Paris-based International Energy Agency said today in its monthly report.