Your stocks to watch for the week ahead are LNG stocks Cheniere Energy (LNG), Flex LNG (FLNG), Golar LNG (GLNG), New Fortress Energy (NFE) and Excelerate Energy (EE).
X
With the market in a confirmed uptrend and a “wait and see” mentality around whether the Federal Reserve will hike rates by 75 basis points this coming week, these five LNG stocks are worth keeping tabs on for investors looking to add energy exposure to their portfolios.
Global energy prices have been volatile in recent weeks amid fears of recession and possible oil and gas demand destruction in the forecasts. Since Russia invaded Ukraine earlier this year, both U.S. crude oil and natural gas futures have hit highs and then retreated before rebounding this week.
Meanwhile, Europe has been busy finding alternative energy sources to replace Russia to fill its gas storage for the winter. Europe’s stores reached around 94% capacity this week which led Amsterdam spot prices to go negative, as liquefied natural gas tankers waited outside of European ports.
In 2021, Russia provided nearly half the European Union’s gas imports. So far in 2022, more than 70% of total U.S. LNG cargoes have gone to Europe, compared with 34% in 2021, according to federal data.
The U.S. is the world’s top natural gas producer and it is gearing up to bring more LNG shipping capacity online with the Freeport LNG export plant set to restart operations in November.
While Europe’s gas storage is currently near full, cold weather this winter could keep demand high and LNG stocks with shipping assets essential.
Demand for LNG in Europe and Asia should remain strong.
LNG Stocks: Cheniere Energy Stock
LNG shares rose 0.2% to 174.48 during Friday’s market trading. On the week, the stock dropped 0.75%. Shares have reclaimed the 10-week moving average and have formed a cup-with-handle pattern with a 178.69 buy point, according to MarketSmith analysis. The buy range extends from 160.30 to 176.33.
Houston-based Cheniere Energy is the largest producer of liquefied natural gas in the U.S. and one of the largest LNG operators in…
..
