Obviously US focused but the same applies to Canada. GLTA
Also from Morgan Stanley, U.S. oil and gas analyst Devin McDermott sees recent volatility in the sector as a buying opportunity,
“So far in 2021, demand has recovered from ~93 mb/d in 1Q to ~99 mb/d currently, now sitting only ~2% below pre-Covid levels. At the same time, constrained supply amid a measured unwind of OPEC cuts and pervasive capital discipline within US shale has resulted in remarkably steady inventory draws, averaging ~2 mb/d year to date — eroding all of the 2020 surplus and more… Oil outlook remains constructive for 2022, with OPEC’s Dec 1-2 meeting a near term catalyst to watch … MS Oil Strategist Martijn Rats estimates that oil prices already reflect a sharp weakening in demand ... Friday’s move was consistent with a ~4 mb/d fall in oil demand or a ~180 MMbbl rise in OECD inventories, an outcome which he views as unlikely … OW [ overweight]-rated OVV [ Ovintiv Inc.], FANG [Diamondback Energy] , [APA Corp] and COP [Conocophillips] offer compelling combinations of FCF [free cash flow] yield, valuation, leverage and cash returns, while EW-rated DVN [Devon Energy Corp] & MRO [Marathon Oil Corp.] also stand out.”
“MS sees buying opportunity in U.S. oil and gas”