RE: Winni Frothing at the Mouth ...29 Jan 2022 11:36
Nice post VerbierDave. Plenty to be said here. So Oil is around $85. My stance is oil is going higher.
The price of oil an gas stocks have been materially lower than oil itself, which has been rising. Things just aren’t happening normally here with the oil price going up in this current cycle.
We have low rig counts, investment in to oil production is low and this does not add up as being at the top of a cycle. Normally you see high investment, production growing v the supply etc
Clearly Union Jack Oil is way too cheap, which makes me realise that Oil is way too cheap too.
Fundamentally there is nothing that convinces me that over the next few years we will not see oil continue to rise. Yes, there will be pull backs of course, but i do see $140 Oil price in a few years from now.