Energy ETFs - List For Investors Amid Cooling And Rising Energy DemanJohannes Röll 26 / February / 21 Visitors: 169
The harsh polar frosts in the subtropics have tested the highly decentralized model of electricity in Texas, in which power plants have no incentive to create backup capacity, but are paid for the energy they sell. There was a large-scale power outage due to freezing of gas pipelines, and also due to weather conditions, solar and wind generation was turned off. Strong demand has overwhelmed the state's power grid, and Texas's power balance is likely to be revised after the outages.
Crude oil futures have already surged above $ 61 a barrel, but natural gas prices rose another 1.8% overnight after Texas Gov. Greg Abbott banned the state's natural gas sales outside of its borders. Among those looking to cash in on skyrocketing prices, Comstock Resources (NYSE: CRK), which outperforms the market by 4% in the premarket after rising more than 9% on Wednesday.
Oil prices this week also returned to levels not seen before the COVID pandemic that erupted in early 2020. Quarantines and weakening demand have taken a heavy toll on commodities, and in April oil futures even went into negative territory due to overflowing vaults around the world. Prices have been recovering steadily in recent months amid progress in vaccination programs, raising hopes for a year-end economic recovery and rising oil demand.
Cold winters and rising energy demand are pushing energy prices up
In particular, the Texas cold has inspired to pull together the maximum found US ETFs made up of energy companies.
An ETF, or index fund, is a type of passive investing in the stock markets where an investor invests in a fund following an index strategy. This kind of strategy involves the purchase of all assets available for investment in shares proportional to their market capitalization and does not imply a fundamental analysis of each asset separately. Investing in such funds is very simple in nature, but, however, can be risky, since the index follows the general movement of the market and is not immune to market bubbles. Index funds are popular across sectors and regions, such as China's tech sector indexes, which include a maximum of Chinese e-commerce and internet companies. There are also different funds formed from the shares of various energy companies.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer