It once was a regional commodity, often consumed where it was produced. But there have been innovations in transporting it, and the global trade is now in full force.
Coal and gas power 70% of America’s grid, as well, and the price of coal has doubled. This will ultimately translate into more costly electricity.
Suddenly, reading by candlelight doesn’t seem like such a bad idea.
Investors may find this as an opportunity to hedge the rising energy costs:
- United States Natural Gas (UNG), up 53.5% year-to-date
- Market Vectors Coal (KOL), up 20.3% year-to-date
- Utilties Select Sector SPDR (XLU), down 4.8% year-to-date
