This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB6U08A_M.jpg
European natural gas prices dipped Wednesday on signs that Russia may increase supplies. However, considering the severe supply and demand mismatch, prices are expected to remain high. In addition, Hurricane Ida, which knocked offline the vast majority of the Gulf of Mexico’s oil and gas production, also contributed to the rise in natural gas prices. Furthermore, Bank of America (NYSE:BAC) said Brent crude oil, which drives the price of gasoline, could reach as much as $120 per barrel by the middle of next year. And according to the Energy Information Administration, U.S. households that rely on natural gas for heating will spend an average of $746 on heating their homes this winter, up 30% from last winter, which is the highest level since the winter of 2005-2006. So, both WES and TELL should benefit.
TELL’s shares have gained 10.3% in price over the past month, while WES has returned 1.1%. Also, TELL’s 78.3% gains over the past six months are significantly higher than WES’ 5.6% returns. Moreover, TELL is the clear winner with 202.3% gains versus WES’ 62% returns in terms of year-to-date performance.
