Quote Originally Posted by manucastle View Post
XOP seems a good choice. To be a little more detailed Natural Gas seems to have a good volatile future. Would UNG be a possibility as well ?

Here is some insite why :-

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Breaking story.

Maran Gas, a Greek shipping entity, are about to place a huge order for 8 LNG tankers.

http://www.hellenicshippingnews.com/...option=com_con...

Eight is huge for a couple of reasons
1. That's about a $1.6B order
2. It involves two shipyards
3. Through late May 2011, 16 vessels had been ordered YTD.

FWIW, Maran Gas had switched 3 VLCC orders into LNG tanker orders earlier this year, and its existing
operational fleet consists of 5 LNG tankers and 2 LPG tankers

http://boards.fool.com/breaking-stor...-29339135.aspx
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Trev
Both UNG and USO have underperformed the underlynig commodities, because of the contral roll-over.

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NG went from $10 to $5, but UNG went from $100 to $12
Oil went from $120 to $100 while USO went from $100 to $40.

UNG and USO are good only for short trades.

Regarding the LNG tanker issues, they are probably also a consequence of cheap money.
I would not be surprised to see overbuilding at some point.. infrastructure can hardly match the demand cycle. It often overshoots it by a very wide margin.



Pascal