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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (106627)	5/28/2021 2:11:29 PM
From: Goose94	Read Replies (1) \| Respond to of 203399

Crude Oil: Eric Nuttall on BNN.ca Market Call May 28th @ 1200ET The fear of peak demand is leading to the reality of peak supply. With normalizing demand, the end of U.S. shale hyper growth, the imminent exhaustion of OPEC spare capacity, and plateauing global offshore production for the next several years oil has entered into a structural, multi-year bull market and will likely surpass US$100WTI in the coming years. Having been consistent in my views (called for US$50WTI by YE’20 when oil was in the US$30’s in early 2020; US$60WTI then US$70WTI by June ’21 earlier in the year) the macro continues to evolve almost exactly as expected. Given vastly improved oil prices the oil and gas sector is on the cusp of generating egregious levels of free cash flow and with balance sheets nearly repaired of the damage inflicted in 2020 companies are nearly ready to return unfathomable levels of capital back to shareholders. With the average free cash flow yield of the companies I follow exceeding 20 per cent at US$70WTI we are on the cusp of significant dividend increases and share buybacks. Equally, with average trading multiples of 3.2x versus historical averages of 8x the inevitable return of generalist investors is near and with it a significant rerating in energy stocks. The party is just starting.