ARC Resources Ltd T.ARX

Why stocks are down despite the spike in WTI

[Trapped]

It's pretty simple. The spike in commodities will hit everything and it's not just from hydrocarbons. Agricultural inputs like potash and phosphate are also up sharply, which will impact food prices in a very big way.

Given inflationary pressures and combined with rate hikes from central banks, it's a lot more likely we'll be tipping into a global recession at some point in the near term, despite the COVID-19 reopening trade, which would otherwise be very bullish.

O&G names are trading down on anticipated lower demand, but (despite the current price of WTI) they're not fully pricing in the massive problem of chronic undersupply, which isn't going to improve any time soon, even with an Iranian output deal. The experts aren't wrong when they say O&G names are trading as though WTI was in the $60s.

In a nutshell, these stocks are unbelievably mispriced but they're being dragged down with the broader markets amid unprecedented uncertainty with the global economy. They're also less popular in the first place because the masses are obsessed with EVs, tech, crypto and ESG.

So we wait. When it eventually corrects to the upside, the move will likely be swift and epic. Nobody ever said O&G investing was for the faint of heart.

Thanks for coming to my Ted Talk.

[barneyj44]

Cnq is bucking tge trend and enjoying a great day. I don't beleive they have any hedging and are enjoying the Huge windfall of higher prices.

[Trapped]

I"m very thankful for my position in that oilsands giant.

[RusticHit]

Here comes 14.50 tomm. looks like sell off in O&g is starting

[RusticHit]

Market knows this is top in Oil n Gas so smarties taking off some from table ,could see some consildation here before going up or down