As the global economy emerged from the pandemic, the demand for energy skyrocketed. Tight supply led to high prices, and shares of energy stocks soared. With winter coming, this isn't expected to change, especially with natural gas stocks. That's why investors should consider stocks such as Whiting Petroleum Corp . (NYSE:WLL), PDC Energy , Inc. (NASDAQ:PDCE), and Occidental Petroleum Corporation (NYSE:OXY).As people emerged from their homes as the threat of the COVID-19 pandemic diminished, global economic activities surged. So did energy prices, particularly natural gas. This led to massive share gains for natural gas stocks. While prices have cooled a little over the past few weeks, they are starting to rebound again.
The upcoming winter season is partly driving this. Making matters worse is the prediction by experts that this winter will be colder than the past few. The colder it is, the higher demand for natural gas. This leads to higher prices and more gains for natural gas stock prices. Also driving up prices this year is tight supply. So, as it gets colder and people increase their heat, prices go up, and the supply lessens even further.
Yesterday's news that German regulators suspended certification proceedings for a natural gas pipeline from Russia will likely lead to less fuel this winter in Europe and higher natural gas prices. Considering all these factors, it's more likely that natural gas stocks have more room to run. That's why investors should consider adding Whiting Petroleum Corp. (WLL), PDC Energy, Inc. (PDCE), and Occidental Petroleum Corporation (OXY) to their portfolios.