Hot Gas Stocks To Invest In Right Now

U.S. crude oil supplies fell 9.9 million barrels (2.6%) for the week ending July 5, according to an Energy Information Administration (EIA) report (link opens a PDF) released today.

The report also shows that gasoline prices at the pump fell for the fourth week in a row, down $0.004 to a national average of $3.492 per gallon.

After falling 2.6% the previous week as well, oil inventories seem to be locking in to a downward dip. While imports increased by a slight 118,000 barrels per day (bbpd), an additional 28,000 bbpd increase in refinery inputs after the previous week's 386,000 jump�kept supplies shrinking.

Source: eia.gov.�

Gasoline inventories also dropped significantly, down 2.6 million barrels�(1.2%) after a 1.7-million-barrel decrease the week before. Demand for motor gasoline is up a seasonally adjusted 2.5% over the last four weeks, and supplies remain "well above the upper limit of the average range," according to the EIA.

Best Construction Stocks For 2016: Western Refining Inc.(WNR)

Western Refining, Inc. operates as an independent crude oil refiner and marketer of refined products. The company operates in three segments Refining Group, Wholesale Group, and Retail Group. The Refining Group segment operates two refineries in Texas and Mexico; two stand-alone refined product distribution terminals in New Mexico; and four asphalt terminals in Texas, as well as operates crude oil transportation and gathering pipeline system in New Mexico. It refines various grades of gasoline, diesel fuel, jet fuel, and other products from crude oil, other feedstocks, and blending components; and acquires refined products through exchange agreements and from various third-party suppliers. This segment sells its products through its wholesale group and service stations, independent wholesalers and retailers, commercial accounts, and sales and exchanges with oil companies. The Wholesale Group segment distributes commercial wholesale petroleum products primarily in Arizona, California, Colorado, Nevada, New Mexico, Texas, and Utah for retail fuel distributors, as well as for the mining, construction, utility, manufacturing, transportation, aviation, and agricultural industries. The Retail Group segment operates service stations, which include convenience stores or kiosks that sell various grades of gasoline, diesel fuel, general merchandise, and beverage and food products to the general public. As of February 24, 2012, it operated 210 service stations with convenience stores or kiosks located in Arizona, New Mexico, Colorado, and Texas. The company was incorporated in 2005 and is headquartered in El Paso, Texas.

Advisors' Opinion:

• [By Robert Rapier]

  Our recommended stocks in the camp are HollyFrontier (HFC), Valero (VLO), and Western Refining (WNR).

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• [By Ben Levisohn]

  How bad has this week been? Marathon Petroleum has fallen 4.3% through yesterday’s close, while HollyFrontier has dropped 2.5%, Valero Energy (VLO) has declined 3.5% and Alon USA Partners (ALDW) has slipped 5.7%. Western Refining (WNR) has weathered the selling and has ticked down just 0.3%.

• [By Dan Dzombak]

  Third among oil and gas stocks today was Western Refining (NYSE: WNR  ) up 4.14%, to $32.43. During the refiners' drop on Tuesday and Wednesday, Delek dropped 11%. Despite the comeback today, the stock is still down 7.32% from where it was before the plunge. Last month, after crushing its earnings, Western Refining announced they were considering launching a master limited partnership for some of their midstream assets. MLP spinoffs have been a hot topic the past year as more and more companies take advantage of investors' hunt for yield, and the tax savings MLPs offer. Fool senior analyst Jim Mueller added to his holdings of Western Refining in February at prices slightly higher than today --�find out why by reading his pitch here.

• [By Ben Levisohn]

  We believe capture rates [how much of the difference between the cost of oil and refined products a company can earn. Ed. ] troughed in 3Q13 and most US refiners will show a quarter-over-quarter improvement as differentials were widening and the WTI curve moved to contango from backwardation. Positive refining revisions will positively impact [Exxon Mobil] more than [Chevron], as�[Exxon Mobil] has significantly more absolute N. American refining capacity. Marketing margins [the margins from selling the finished product to the retail market. Ed.] also improved 17% q/q and 32% q/q on [West Coast] and [Gulf Coast] respectively, a positive indicator for refiners with retail operation [(Marathon Petroleum (MPC), Tesoro (TSO), Phillips 66 (PSX), Western Refining (WNR) & Delek US (DK))].

Hot Gas Stocks To Invest In Right Now: Mechel Steel Group OAO (MTL)

Mechel OAO, together with its subsidiaries, engages in mining and steel businesses in the Russian Federation, other CIS countries, Europe, Asia, the Middle East, the United States, and internationally. The company operates through four segments: Mining, Steel, Ferroalloys, and Power. The Mining segment engages in the production and sale of metallurgical and steam coal, coke, iron ore, and limestone, as well as chemical products, such as coal tar, naphthalene, and other compounds. The Steel segment produces and sells semi-finished steel products, carbon and special long products, and carbon and stainless flat products, as well as metal products, including wire products, forgings, and stampings. The Ferroalloys segment is involved in the production and sale of nickel ore, low-ferrous ferronickel, ferrochrome, and ferrosilicon. The Power segment engages in the generation and sale of electricity and heat energy from steam coal; and power distribution activities. The company, f ormerly known as Mechel Steel Group OAO, was founded in 2003 and is based in Moscow, the Russian Federation.

Advisors' Opinion:

• [By MONEYMORNING.COM]

  As a result, Russian stocks have generally been getting hammered. To keep the data clean and discrete, I ran the charts over the last three months. In that period, energy giants Gazprom OAO (OTC: OGZPY) and CNOOC Ltd. (ADR) (NYSE: CEO) are both off more than 18%. The steel company Mechel OAO (ADR) (NYSE: MTL) is off 24%.

• [By Eric Volkman]

  The coffers of Mechel (NYSE: MTL  ) are now much fuller. The company has signed an agreement for a 40 billion ruble ($1.3 billion) loan from VTB Bank, a lender based in Mechel's home base of Russia. Of the total, roughly 25 billion ($802 million) will go toward the servicing of short-term facilities coming due in 2013. It also aims to refinance other debt obligations with the monies.

• [By Jake L'Ecuyer]

  Mechel OAO (NYSE: MTL) was down, falling 2.33 percent to $2.52 after the company appointed Senior Vice-President for Economics and Management Oleg Korzhov as its Chief Executive Officer.

• [By Dan Caplinger]

  Finally, beyond the Dow, Russian steel company Mechel (NYSE: MTL  ) has spiked 10% after announcing a share buyback program. With steel producers having been down and out for a long time, investors should expect to see similar moves from other companies in the future. Weak financial conditions make it hard for companies to spare the cash for buybacks, but when shares are down and out, buybacks produce the best return for the company.

Hot Gas Stocks To Invest In Right Now: Renewable Energy Group Inc (REGI)

Renewable Energy Group, Inc., incorporated in August 2006, is a producer of biodiesel in the United States. The Company is engaged in each aspect of biodiesel production, from acquiring feedstock, managing construction and operating biodiesel production facilities to marketing, selling and distributing biodiesel and its co-products. During the year ended December 31, 2011, the Company sold approximately 150 million gallons of biodiesel. As of December 31, 2011, the Company operated a network of six biodiesel plants, with an aggregate production capacity of 212 million gallons per year. On July 12, 2011, the Company acquired SoyMor Biodiesel, LLC (SoyMor), which has 30 million gallons per year biodiesel production facility in Albert Lea, Minnesota. In January 2012, it exercised its option to purchase the 60 million gallons per year facility in Seneca, Illinois, which it operated under a lease. In August 2013, the Company acquired biodiesel plant in Mason City, Iowa. In January 2014, Renewable Energy Group Inc acquired renewable chemical technology developer LS9, Inc.

The Company produces its biodiesel from a range of feedstocks, including inedible animal fat, used cooking oil and inedible corn oil. It also produces a smaller portion of its biodiesel from virgin vegetable oils. It owns biodiesel production facilities with capacities consisting of 12 million gallons per year facility in Ralston, Iowa; 35 million gallons per year facility near Houston, Texas, or the Houston facility; 45 million gallons per year facility in Danville, Illinois, and 30 million gallons per year facility in Newton, Iowa.

The Company competes with Archer Daniels Midland Company, Cargill, Incorporated, Louis Dreyfus Commodities Group, Ag Processing Inc., Mansfield, Astra, Gavilon, Tenaska, ED&F Man, Dynamic Fuels, LLC, Syntroleum Corporation, Tyson Foods, Inc., Diamond Green Diesel, LLC and Darling International.

Advisors' Opinion:

• [By Roberto Pedone]

  Renewable Energy Group (REGI) is a producer of biodiesel in U.S. This stock closed up 11.5% at $15.59 in Wednesday's trading session.

  Wednesday's Volume: 1.59 million
  
  Three-Month Average Volume: 634,616
  
  Volume % Change: 235%

  From a technical perspective, REGI exploded higher here right off its 50-day moving average of $13.83 with heavy upside volume. This move pushed shares of REGI into breakout and all-time high territory, since the stock flirted with some near-term overhead resistance levels at $14.75 to its former all-time high at $15.71. At last check, REGI closed near the highs of the day at $15.75 and volume was well above its three-month average action of 634,616 shares.

  Traders should now look for long-biased trades in REGI as long as it's trending above its 50-day at $13.83 and then once it sustains a move or close above its new all-time high of $15.75 with volume that's near or above 634,616 shares. If we get that move soon, then REGI will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $20 to $22.

• [By John Udovich]

  On Tuesday, lightly traded small cap biodiesel stock Methes Energies International Ltd (NASDAQ: MEIL) soared 53.78% on record production figures, meaning its worth taking a closer look at whether that surge was actually warranted plus look at the performance of�potential peers like biodiesel stock Renewable Energy Group Inc (NASDAQ: REGI) and biofuel ETF the ELEMENTS MLCX Biofuels Index TR ETN (NYSEArca: FUE).

• [By Maxx Chatsko]

  When it comes to the highly charged biodiesel industry, one company stands above the rest. Way above. Renewable Energy Group (NASDAQ: REGI  ) is not only the leader in terms of pure production capacity, but it also displays plenty of desirables that should be on every investor's radar. What makes the company so great? It is no secret. In particular, REG has focused on three areas to become the top biodiesel stock.

Hot Gas Stocks To Invest In Right Now: Transportadora de Gas del Sur SA (TGS)

Transportadora de Gas del Sur S.A. (TGS) is engaged in the transportation of natural gas and production and commercialization of natural gas liquids (NGL). TGS�� pipeline system connects major gas fields in southern and western Argentina with gas distributors and industries in those areas and in the greater Buenos Aires area. The Company also renders midstream services, which consist of gas treatment, removal of impurities from the natural gas stream, gas compression, wellhead gas gathering and pipeline construction, operation, and maintenance services. The Company operates in three segments: natural gas transportation services through its pipeline system; NGL production and commercialization, and other services, which include midstream and telecommunication services.

During the year ended December 31, 2009, the Company�� gas transportation represented approximately 42% of total net revenues. During 2009, its NGL production and commercialization segment accounted for 50% of the total revenues of the Company. During 2009, its other services segment accounted for 8% of total revenues of the Company. Its other services segment consists of midstream and telecommunications services. Through midstream services, TGS provides integral solutions related to natural gas from wellhead up to the transportation systems. The services consists of gas gathering, compression and treatment, as well as construction, operation and maintenance of pipelines, which are generally rendered to natural gas and oil producers at wellhead. The customers��portfolio also includes distribution companies, industrial users, power plants and refineries.

During 2009, the Company provided a range of technical services to different customers. The services consisted of connections to the transportation system, engineering inspections, project management and professional technical counseling. Telecommunication services are provided through Telcosur S.A. (Telcosur), who renders services both as an independent c! arrier of carriers and to corporate clients within its area. Telcosur has a digital land radio connection system.

Advisors' Opinion:

• [By Corinne Gretler]

  TGS (TGS) slumped 7.4 percent to 176.90 kroner as Norway�� largest surveyor of underwater oil-and-gas fields lowered its forecast for full-year revenue to $920 million to $1 billion because of lower-than-expected demand from industry. It had projected sales of $970 million to $1.05 billion.

Hot Gas Stocks To Invest In Right Now: Awilco Drilling PLC (AWLCF)

Awilco Drilling PLC is a United Kingdom-based drilling contractor. The Company�� principal business is to own offshore drilling rigs for use in offshore drilling for oil and gas, and to provide drilling services for oil and gas companies using these rigs. The Company operates two semi-submersible drilling rigs: WilHunter, previously Arctic IV and WilPhoenix, previously Arctic II. As of December 31, 2011, the Company wholly owned five subsidiaries, namely WilPhoenix (UK) Ltd, WilHunter (UK) Ltd, WilPhoenix (Malta) Ltd, WilHunter (Malta) Ltd and the Singapore-based Awilco Drilling Pte Ltd. As of December 31, 2011, Awilco Drilling AS was the Company's largest shareholder and controlled 49% shares. Advisors' Opinion:

• [By Ben Levisohn]

  We expect Caledonia to generate close to $600M in EBITDA. While RIGs mid-water OPEX has averaged about $125k/d we expect it to be lower at Caledonia. 2015 Consensus EBITDA for RIG is ~$3B which means 20% of RIGs 2015 EBITDA comes from the rigs that will become Caledonia. The problem (in a bear market) is that companies with lower end rigs trade at a discount ��just ask Awilco (AWLCF), Fred Olsen Energy, and Paragon Offshore (PGN) which trade at an average multiple of 3.3x on 2015 EBITDA versus RIG which trades at 6.3x.