How To Trade Oil And Gas

  • ALB, a chemical manufacturing company, large provider of lithium for EV batteries;
  • DCP, a natural gas company dedicated to midstream petroleum services;
  • ENB, a multinational pipeline company, focusing on the transportation of oil and gas;
  • ENPH, a tech company providing residential/commercial solar plus storage solutions;
  • SPWR, a company specialising in solar power generation and energy storage.

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Figure 1 – Albemarle Corp (ALB) stock (monthly, logarithmic scale)

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Figure 2 – DCP Midstream Partners LP (DCP) stock (monthly, logarithmic scale)

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Figure 3 – Enbridge Inc. (ENB) stock (monthly, logarithmic scale)

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Figure 4 – Enphase Energy Inc. (ENPH) stock (weekly, logarithmic scale)

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Figure 5 – SunPower Corp. (SPWR) stock (monthly, logarithmic scale)

Exchange-traded funds (ETFs)

On the ETF market, you can invest directly in a basket of stocks directly or indirectly linked to the energy sector. For example, investing in a portfolio of natural gas, oil and alternative or renewable energy companies will be seen as directly linked to the energy industry. On the other hand, investing in some other sectors such as the maritime/shipping and transportation sectors, the construction/utility sectors, or even – to another extent – the crypto/mining sector, could be seen as indirect assets (the latter having a relative impact on energy demand and supply.)

The following are some ETFs worth checking out (click on link below each chart to see more information, data, holdings, etc.):

  • FCG, index with exposure to the exploration and production of natural gas;
  • QCLN, index designed to gauge the performance of U.S. clean energy companies;
  • TAN, index comprised of companies focusing on the solar energy industry.

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Figure 1 – First Trust Natural Gas (FCG) ETF (monthly, logarithmic scale)

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Figure 2 – First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) ETF (weekly, logarithmic scale)

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Disclaimer: All essays, research and information found in this article represent the analyses and opinions of Sunshine Profits' associates only. As such, it may prove wrong and be ...

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