some common senseSo, the share price has been dropping this month like a stone. Plenty of reasons are given. 1.Recession is coming and less oil will be used. 2. People are simply taking cash out of the market because a recession is near. 3. China may be opening up, but the people have covid and can't work and so less demand for oil. 4. Technical analysis shows that energy stocks are out of favour.
To that I say, 1. Biden instead of adding to the oil 'glut' is now reversing course and instead of drawing from, he's buying up oil to put back in the SPR. 2. China can't be sick forever, I suspect business will pick up a little. There is little evidence that there is too much oil around - in fact supplies are close to tight. 3. While many expect a recession, it is not a given that it will happen, and if, that it will be mild and of short duration.
Finally when it comes to natural gas, demand is strong, just look at he US weather reports. Freeport should be exporting again come Jan.1, as will Tourmaline. I don't think prices are going to stay close to $6, and even of it does, Tourmaline will make enough money to pay a special dividend. Just my 2 cents' worth. GLTA