Oil Soars: These Energy Areas Are Next – Voice of the People

Oil Soars: These Energy Areas Are Next

As spot crude oil has pushed through the $100 level, the upside is somewhat limited. Oil is up over 30% in the last six weeks and with the global economy still weak, it is hard to imagine it will push much higher. Investors are searching frantically for the next big energy area. There are some obvious places that money should start to flow.

Natural gas continues to be the obvious answer to some easy money upside. With oil back above $100, a natural switch towards the cheap natural gas should begin. Natural gas is a cleaner and cheaper energy source. With the commodity trading at or near 52 week lows, it makes sense in this range. Some natural gas stocks to watch are Chesapeake Energy Corporation (CHK – Analyst Report) and Devon Energy Corporation (DVN – Analyst Report).

Another possible area for investment is in solar stocks. This sector has been crushed but as it trades at multi year lows and oil moves over $100, it begins to make sense as a speculative investment. Best of breed stocks like First Solar, Inc. (FSLR – Analyst Report) and cheap China solar producers like Suntech Power Holdings Co., Ltd. (ADR) (STP – Analyst Report) are likely to appreciate over the next year from current levels.

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