Post by
vocex1 on Jun 09, 2022 3:14pm
PETRUS CORRECTION
Petrus shares hit the 3.40 cdn target I was looking at a few days ago, now it has quickly dropped back about 12% from that 52 week high price, even as Crude is stable after climbing back from 100 usd/bbl up to 121 now.
NatGas took a plunge on the news of the Texas LNG plant accident, which I understand puts a goodly amount of gas available to refill storage, that otherwise would have been shipped offshore, primarily to Europe.
That LNG was being sold mostly to Asia prior to the Ukraine conflict, now US LNG is being diverted to Europe as EU is cutting off Russian gas(and oil, too) with sanction regime.
So it is pretty much 'Musical Chairs' with regard to oil and gas supply and demand factors, whatever is available world-wide has a ready buyer, and even with massive SPR releases, crude draws are relatively strong. The reports are that Russian oil is getting to market and the large discounts that buyers were paying for Ural Crude are evaporating, getting closer to market pricing each day.
I took a small profit for my wife's Roth account on the runup in Petrus the other day and have now bought back those shares and added more at current discounted prices from the highs.
All I can see is continued suicidal energy policies in EU and US with more doubling down on Green while restricting and hamstringing attempts by the O+G industry to bring supply up to meet demand, so on we go, into the breach boys.
At continued $100-$120 us/bbl and $8-$9 usd/mcf pricing Petrus and most other Canadian producers are minting money.