Post by
mintgecko on Dec 26, 2024 5:27pm
Oil and Gas Already Falling
Still think there is a test of $67ish and possibly lower before we go higher in oil. Natural gas already in freefall as seasonal correction starts on a mild winter. We are much more bullish oil than gas in the near term. The gassiness of shale is why natural gas and condensate will be well supplied in the near term. As for Crude, and the derivatives like diesel and gasoline, we are much more bullish. Don’t see much spare capacity despite OPEC acting like they have it. We are already in a balanced market and expecting a deficit in Q1 2025. And that’s with China, Europe, and many other economies struggling. As far as permeability and grade of oil, it’s what makes Canada so strong. Much more bullish the Bakken pool over anything in the Permian. Vet so strong because of Spartan Acquisition, TTF, and Brent premium. Windfall tax a slap in the face. Has capped potential for a company that looks much different now with European risk, as well as the transition to natural gas from a previous 50/50. Surge with very similar metrics to Vermilion prior to acquisition. We like it much better going forward, as well as Chord for light/medium oil exposure. Vermillion has basically become one of the highest cost gas producers in the sector when you look at capex relative to production and that’s even after new acquisition. We like TOU, ARX and KEL much better, followed by names like AAV, PEY, BIR.
Comment by
Pandora on Dec 26, 2024 6:18pm
"We like TOU, ARX and KEL much better, followed by names like AAV, PEY, BIR." When you say 'we' who are you referring to? Or are you quoting a company of some kind?