My Top Energy Stock Pick for 2024

My Top Energy Stock Pick for 2024 | OilPrice.com

Before I started my holiday season vacation a couple of weeks ago, I wrote a couple of pieces looking forward to 2024. Those pieces focused on oil, which is only natural given its importance in the energy space, but as I did my research while on break, I came to the conclusion that my number one pick for 2024 was not in oil, but in an area that was somewhat uninspiring for traders and investors…natural gas.

Let’s get one thing out of the way early; I am not saying that natty will necessarily break out above the $2-$3.50 range that it has been in for most of the last year. It might, but with uncertainty about the geopolitical situation and global economic prospects in some doubt after a year of rate hikes by most central banks, that would be a very bold prediction. However, a breakdown below the year’s $2 low looks even less likely. The US market has been oversupplied for some time and that level has held through multiple tests, and the longer that goes on, the more likely it is that the market will do its thing and bring supply and demand back into balance.

So, while I am not necessarily looking for a big pop in natty early this year, I do believe there will be a solid base around $2 should we drop and some upward pressure on prices. That analysis fits with how I saw things back at the end of September, and at that time I concluded that the best way to play that outlook was not through natty itself, nor through a producer, but rather through…