Oil & Gas Exploration & Production

Pocketing Gains in Oil/Gold Pair Trade…

Oil/Gold Update Oil/…

Reinstate The Long S&P E&P/Short Global Gold Miners Trade…

Highlights WTI futures contracts delivering into Cushing, Oklahoma, in June could trade or go off the board below $0.00/bbl next month, just as the May contracts did this month, when they changed hands at a low of -$40.32/bbl last week.  Oil storage at this critical hub is approaching its…

Highlights Portfolio Strategy We remain comfortable with a 3,000 SPX fair value estimate backed up by our DDM, forward ERP and sensitivity analyses. The path of least resistance remains higher for the SPX on a 9-12 month cyclical time horizon. The oil price collapse is eliciting a massive…

The price differential at which Canadian heavy-sour crude trades to the North American benchmark WTI will be pushed to -$20/bbl into 1Q20, as transportation constraints continue to slow the marginal barrel’s egress from Alberta. Increasing demand for low-sulfur distillate fuels as global marine-…

Overweight Crude Oil And E&P Are Joined At The Hip…

Highlights   Portfolio Strategy Firming relative profit prospects, rising likelihood of an oil price spike and higher geopolitical risk premia, bombed out valuations and extremely oversold technicals all signal that an overweight stance is warranted in the S&P energy sector. Rising…

Housekeeping…

Oil price volatility will remain elevated, as markets transition from a pronounced demand slowdown in 1H19, which is apparent in actual consumption data, to stronger growth. We expect global fiscal and monetary accommodation will arrest and reverse this slowdown in 2H19, and spur oil demand…