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

To: Goose94 who wrote (138227)	11/25/2022 4:06:24 PM
From: Goose94	Read Replies (1) \| Respond to of 203085

Crude Oil: Christmas has come early for energy investors with a Chinese COVID-zero policy-induced sell-off combined with lingering fears of an impending recession leading to a $10+/bbl selloff in oil. Fundamentals remain strong! Despite the largest release in history from strategic political reserves and Chinese demand being suppressed by about 1MM Bbl/d, global oil inventories have continued to fall throughout 2022. What happens in 2023 when the SPR release ends, China eventually emerges from lockdown, Russia production is finally impacted by the EU import embargo, and fuel switching occurs in Europe due to forecasts of a cold winter? We remain bullish. Canadian energy stocks are reaching their ultimate debt targets in real-time and are in the coming months and quarters about to meaningfully increase the amount of free cash flow to be returned to investors in the form of share buybacks and variable dividends. This action in our opinion will act as a catalyst to re-rate valuations multiples from still depressed levels (less than half of historical). Despite two very strong years for energy investors, we remain bullish heading into 2023 believing that patience will continue to be rewarded given the strong macro for oil, record profitability for the sector, rock-solid balance sheets, and the enshrined commitment to return the majority of free cash flow back to shareholders. Eric Nuttall on BNN.ca Market Call Friday November 25th @ 1200ET