Suncor Energy Inc. T.SU

And here's the new range:

[MigraineCall]

With Canadian oil stocks trading now at low multiples and around a $50 to $60 WTI valuation, this range ought to take a lot of risk off the table.


https://twitter.com/JavierBlas/status/1569744016677257219

 

 

 

 

 

 

 

Javier Blas

@JavierBlas

 

 

The new state-controlled oil price trading band: The Saudi Arabia put is at $100 a barrel
The White House call is at $80 a barrel #OOTT #EnergyCrisis

 

 

12:45 AM · Sep 14, 2022 ·Twitter Web App

So, with Canadian oil stocks trading at a $50 or $60 WT valuation,
 

[MigraineCall]

To be more clear, it is not really as much as a range, but thresholds of price levels that goverrnments are happy/unhappy with. The Saudis will act to keep prices higher when below $100. The Biden admin will allow it to go down to $80 then start buying.  If they follow through with this, there is a floor of $80, as both sides take actions that will support prices. On the upside, there is

[MaximusGainus]

Unlike China, he can't fill it with sanctioned Russian oil at $60. LOL!

[Experienced]

Fits very well with my scenario. That said, in terms of my recession scenario, depending on the level of short term demand destruction, neither the Saudis nor Biden  may be able to keep the price above 80.  But - if it does go below that price, as I mentioned before, I would be backing up the truck. The good news is that in that price range, SU will make loads of FCF since their cost