The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022. That's 45% higher than current levels. Americans grow pessimistic on the economy as high inflation lingers
Possibly , but the pressure being put on US Oil majors is exaggerated by a biased media IMO. In any case there are plenty of other global Oil giants from the likes Russia / China and even South Korea to fill the gap. There was an article in the Times today showing how Hedge funds are making a killing buy up Sector Shares being shunned by ESG Investors.
Personally I dont believe the hype and it would take a single private company with deep pockets and the relevant experience. Buying an Oil Company is one thing running it as a large operating entity completely another.
IMO
Money Managers Are Throwing Their Weight Behind The Oil Price Rally
By Irina Slav - Oct 26, 2021, 12:00 PM CDT
Hedge funds increased their bullish positions on oil by 11 million barrels last week
New bearish positions only came in at about 1 million barrels
The colder the winter in the northern hemisphere, the higher all fossil fuel prices will go
The prospect of Brent crude reaching $90 per barrel is becoming increasingly realistic, and West Texas Intermediate yesterday touched the highest since 2014. This is fueling a strong bullish sentiment on the oil market.
Hedge funds bought more oil and oil product futures than they sold over seven of the last eight weeks, Reuters' John Kemp reported in his weekly fund-buying column. The data Kemp cited shows that hedge funds, which are big buyers of oil futures, serving as a weathervane for market sentiment at any given point, bought the equivalent of 188 million barrels over the period.
What's perhaps even more telling is that hedge funds increased their bullish positions on oil by 11 million barrels, while new bearish positions only came in at about 1 million barrels, Kemp also said. This means the majority of market players of the fund variety, like investment banks, expect still higher prices.
"The global energy supply crunch continues to show its teeth, as oil prices extend their upward march this week, a result of traders pricing in the ongoing rise in fuel demand – which amid limited supply response is depleting global stockpiles," Reuters quoted Rystad Energy senior oil markets analyst Louise Dickson as saying in another report
Its true that a few US Oil Majors are considering stopping investing in new Oil Producing assets, while the likes of the Chinese are actively buying all they can get there hands on. But the jury is still out on whether the few major US INOCs considering this are serious or just virtue signalling , considering the effect this will have on the SP and dividend payouts.
IMO
A Corgi is all we will have left after Boris bans all us petrol heads. ( or so he thinks)
LOL
Good choice , some of these antique Corgi cars models are worth a fortune. I used to collect them a while ago.
Ill bet it is. One of my neighbours about 15 years ago had a DB5 or 6 that he had in storage and he said "this is my pension " I thought he was joking !
I am going for the V12S one of these days. Bristol Aston had one a few months back.
Yep there are a few classic Astons still around.
That VANTAGE V12S ROADSTER is a beast but currently only the Auto's are around. But there a few USA models coming to the UK these days ~ 600-700bhp and they have improved the handling.
GLA
Of course they are making record profits. So why does anyone believe the naive and gullible who tell us all that INOC's are going to switch to selling wind turbines and solar arrays ? They dont pay for dividends.
Even politicians ( not known for common sense and intellect) have now realised that 2035 for "net zero" is both impossible and not necessary and have now set a realistic target of 2050. Which means of course we will all be using oil and gas for the foreseeable future.
SS
CELICOURT COMMUNICATIONS LIMITED
CCC
I doubt a big bank would either bother posting on an anonymous BBoard or employ intellectual midgets to do so. Its much more likely to be a Hedge Fund or some individual with a grudge against GKP or just traders playing games.
Its true there are a group working ADVFN and probably the same lot with new avatars on here. But they are obvious and well known to us all now. Take it as a buy signal. After all why go to all this time and trouble ( some of these posts take a while to compose ) for some "worthless" little Oil Company ? As they keep telling us. ?
IMO
CCC also boasted to Braudfraud about his dividend payment AFTER he told us all he had sold out.
He is not even a smart troll.
A well deserved one.
Its just a pity ADVFN allow this sort of disinformation campaign to go on for so long.
It would not be tolerated here on LSE. Which is why he only posts on ADVFN.
BD5 lost all his pension money and his family's on a few Oil sector stocks when the last boom was on. Just the usual reasons - greed and ignorance. He blamed his losses from GKP on Todd Kozel and has been running this vendetta ever since.
Luckily no one pays him any attention now and he is basically a laughing stock on ADVFN.
The rational argument Indrid is that Institutions continue to buy and it would make sense to use dividend return to do it rather than use their cash reserve. There is no indication of either selling or holding.
SS
IF this was a "worthless" run of the mill Oil Company you wouldnt have hordes of trolls posting non stop for over 10 YEARS.
But carry on boys and girls , you wont change anything except perhaps to discourage the very occasional individual still silly enough to use this BBoard for Investment advice. Everyone else is either holding or buying.
How does anyone know that the Institutions are not buying more shares with the dividends ?
They are still accumulating shares.
More troll nonsense ?
Yes , the "Barclay Bandits" always wait around 5 working days.
I assume you all know that c-ckeye is KURDNAM63 aka OILMAN 63 from ADVFN ?
Indeed , the only "gas issue " here is Branson and his hot air balloons.
LOL