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

To: Goose94 who wrote (111042)	7/30/2021 3:22:39 PM
From: Goose94	Read Replies (1) \| Respond to of 203656

Crude Oil: is in a structural bull market with a near-term fundamental support around US$70WTI given falling global inventories and a rapid recovery in demand. As demand continues to head towards (and surpass) pre-COVID levels OPEC will gradually bring on all curtailed volumes and effectively exhaust most/all of their spare capacity by the end of 2022. With the backdrop of the end of U.S. shale hyper growth and flatlining global offshore production oil inventories will continue to fall. Ultimately, given growing ESG pressures and the need to prioritize return of capital over growth the oil price will have to go high enough to rationalize demand growth and this will likely require all-time high oil prices in the next 4-6 years. Oil stocks have tremendously lagged the oil price recently with some having fallen by 20 per cent despite ever improving fundamentals. Canadian oil stocks, be it small or large, have never been cheaper and stand on the cusp of returning egregious amounts of capital back to shareholders in the form of dividends and buybacks. Summer doldrums will pass and the advent of conference season will see more and more companies announce such plans. Eric Nuttall on BNN.ca Market Call Friday July 30th @ 1200ET