Eric Pelnik's avatar
$266.4m follower assets
Oil Man Memo
Publishing a note from @oilman69

to those who are interested in energy investing, the ceiling finally looks like it's coming off for natural gas. i'm super bullish natural gas, ethane and propane prices starting this winter through 2022... the reduction in oil drilling is leading to significantly lower supply of those commodities, which are seen as a bi-product of oil drilling, but still makes up a large portion of domestic supply of those commodities. still cautious on the very near-term for prices (domestic storage levels are high currently bc of how warm last winter was, and we're exporting less natural gas right now due to high global storage levels), but that flips pretty quickly once we get closer to winter (exports should return to early 2020 levels, storage withdrawals in winter should be much larger than normal due to lower supply). if you're looking to play it, safest way would be $COG (i own Dec'20 call options), best beta play would be $RRC (has been 90+% of my portfolio since March bc i have a mental block against diversification), and $EQT in between those on safety/beta. or you could buy natural gas futures or $BOIL
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