News on natural gas stocks: what’s going on with CBT, CHK, LNG, TELL stocks?

Among the stocks that are getting immense interest lately are natural gas stocks. Companies such as Pooch (NYSE:CCT), Chesapeake Energy (NASDAQ:CHK), Energy Cheniere (NYSEMKT:LNG) and earthling (NYSEMKT:TO TELL ABOUT) are experiencing mixed price action today.

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Throughout the day, these stocks have surged and plunged as investors try to discern where natural gas prices are heading. Of course, in these uncertain times, energy prices have become a key point for investors to watch.

Why? The Russian invasion of Ukraine put strong upward pressure on the prices of many commodities. From wheat to lithium to nickel to energy sources such as crude oil and natural gas, commodity prices are skyrocketing. This is because Russia and Ukraine are major producers of these commodities. Conflicts and resulting sanctions have made it nearly impossible for disrupted supply to meet global demand.

So, until the invasion is over, we will likely continue to see volatility in commodity prices. Today, the price of many key commodities such as crude oil and natural gas has fallen. Natural gas has been much less affected by crude, which has started to sell off from its peak.

That said, let’s take a look at what’s likely to boost these natural gas stocks over the medium term.

What’s happening with natural gas stocks?

Today’s choppy price action with natural gas stocks certainly makes sense. On the one hand, natural gas prices are falling. On the other hand, prices are still near historical highs. There remains a significant number of investors who believe that it may not even be close to the top of this natural gas bull market.

Indeed, it is widely expected that many countries will continue to wean themselves off Russian natural gas. Europe currently gets about 40% of its natural gas from Russia.

Europe has taken a number of steps recently to reduce its dependence on Russian natural gas. Although these maneuvers may take years to materialize, it is clear that the localization of the energy supply matters more than ever. For these natural gas stocks, this means that geographic exposure is very important. Currently, natural gas prices in Europe are at all time highs.

As we head into the spring and summer months, these global energy issues may ease somewhat. However, in the medium to long term, it is unclear what the average level of disruption in energy markets will be. As a result, investors appear to be bracing for higher natural gas prices, with these four stocks currently on many’s watch list.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.