Winter's Chill May Warm Energy Stocks

With oil trading below $60 per barrel and natural gas working its way toward $10 per million BTUs, there is a lot of talk in the energy world about the prospects for energy equities.

The stocks have traded lower as commodities have lost ground. However, with winter approaching, there's a good chance energy demand will inch higher and, if history holds, patience may well be a virtue for energy investors.

A warmer-than-normal fall has certainly had an impact on energy prices. Even though hurricane damage has continued to limit Gulf of Mexico oil and gas production, there has been little need for it -- temperatures all across the eastern third of the U.S. have been well above normal. It will stay that way the next couple of days -- 60s and 70s up and down the East Coast.

Combine that with warm Atlantic and Pacific surface water temperatures and a Canadian snow pack that hasn't moved below the Northwest Territories and you get an outlook for early winter that isn't terribly encouraging for natural gas investors. ...