Australian Investment Blog

The Oil price is significantly more stable than the natural gas price with only one major move over the last 20 years and that unsurprisingly was the GFC (chart 1). Hence, one of my concerns about investing in natural gas stocks is instantly removed. However, the three natural gas stocks I covered yesterday are also three of the largest oil stocks in Australia, so that clouds the water slightly, hence, easier to simply evaluate on individual merits. I have focused on three smaller oil stocks for the first time:

Beach Energy (BPT) – BPT has traded between 59c and $1.76 for the last 8 years and is currently at the top end of this sideways activity. I would stay long any holdings with stops under $1.45. (chart 2).