RE:unreal stock price1) Pessimism about the economy. Despite all of the efforts being made by OPEC the fear persists that demand is falling due to an economic slowdown. This fear will last through 2020 IMO.
2) Pessimism regarding long term decline in the oil market. The oil market is facing doubts about long term demand due to reduction in use of plastics, rise of EVs, etc...
3) Increase in supply. The increase in supply from US shale producers has most market participants believing that supply/demand fundamentals wil always be tipped in favour of over supply.
4) Poor returns from the sector over the last 5-6 years. Energy has been the worst performing sector over the last five years with 70-90% of equity value being destroyed. Year after year of horrible losses takes a toll on investor psycology with many participants taking the position that they will never come back to energy.
5) Green investing. There are a few large energy investors (ex. Norway) that have promised to exit energy investments. The selling pressure will ensure short terms gains are severely capped.
6) Sentiment on CDN energy companies. The sorty of Canadian energy companies is well known and there is nothing positve to talk about. No progress on pipelines, carbon taxes, bill C-69, etc... CDN energy companies will be the last beneficiary of any market uptick due to the overall negativity regarding returns.