As crude oil prices remain high and natural gas hit a 10-year low Tuesday, commodities trader Dan Dicker said the best bet is clear.
“Nat gas now is at a 45-to-1 differential when the historical to crude is more like 6-to-10,” he said. “I’m telling you, this is an inevitable, inevitable move to nat gas in this country, cannot help to happen whether you have Washington on board or you don’t have Washington on board.”
Natural gas hit a low of $2.20 per million BTUs earlier in the day before recovering slightly. Its midday high was $2.29.
Dicker said “dedicated natural gas stocks” that were hammered recently were certain to triple over the next three years, mentioning such companies as Devon, Ultra Petroleum and Cabot.
“The nat gas move is absolutely inevitable. This is ridiculous, $2.23 an MMBTU,” he said on “ Fast Money .”
Trader Stephen Weiss liked Chesapeake Energy as a play in the space.
“I think there’s tremendous value there,” he said.
Jon Najarian of OptionMonster.com sounded positive on Clean Energy Fuels, a company that converts gasoline-powered vehicles to run on natural gas.
“This will be one of the winners going forward,” he said.Page 1 of 4 | Next Page