The government reported today that gasoline and crude inventories fell last week. The decline was small but this hints of rising demand. Crude inventories fell by 1.5 million barrels which amounts to 0.5%. Gasoline inventories fell by 300,000 barrels or 0.1%.
The growing demand will certainly help energy stocks and one of my favorites in this sector is Southwestern Energy (SWN). The stock is up over 55% for us since I first recommended it in Emerging Growth two years ago. The next earnings report should show profit growth in the neighborhood of 50%. Southwestern Energy is a solid buy.