Macro's point to a strong year for all oil securities!It is very likely that later this year real revenues and growth in oil securities will be trading at a premium as investors scramble to recover from another tech-bubble bursting. The tech-price environment is very frothy; furthermore, the tech-securities price environment resembles the dot-com bubble in the early 2000’s. I think smart money is propping up the system on pandemic stocks until recovery stocks become viable. When the recovery from COVID-19 is imminent, the shift to actual value will be fast. This shift is going to be intensified by global oil production underinvestment leading to a supply crunch. Undersupply will lead to higher-than-normal oil prices and higher than normal profits for oil companies. Demand for security (real revenue and growth) on top of demand for oil securities in a rising oil price scenario, in a presently undervalued sector could provoke unusual movement in all oil securities. PetroTal, in the context of the macroeconomic environment that it finds itself in, could easily surpass price targets!
Check out Art Berman for more on oil supply crunch.
https://www.youtube.com/watch?v=hbxzhzGt12k IMO DYOR