West Texas Intermediate fell 2.46 per cent Tuesday afternoon to US$74.47 a barrel. Eric Nuttall, a partner and senior portfolio manager at Ninepoint partners, said in an interview with BNN Bloomberg on Tuesday that he would only start to worry about the effect on energy stocks if oil falls below US$60 a barrel.
Nuttall said it is “virtually impossible” to explain day-to-day swings in the price of oil. However, he said that lack of liquidity in the market is a driving factor behind US$5 swings in prices. He said that as prices fall, investors get more bearish, but that despite the price decline, the world’s oil market remains undersupplied.
Despite volatility in oil prices, Nuttall said that energy stocks have never before been more profitable, with historically strong balance sheets. Within the energy sector, he said he likes stocks with a common theme of high free cash flow yields and a commitment to return that back to investors. Some of his picks include Baytex Energy Corp., Cenovus Energy Inc., MEG Energy Corp. and others.
biden will have to fill those reserves at some point
The oil market is under refined.
4 commercials to view a small video. The worst I’ve seen on the internet. Have a bit of class