David Rosenberg: Undervalued, unloved and under-owned oil and gas stocks deserve another look

These kinds of distortions take time to make their way through the market and will no doubt act as a tailwind behind oil prices in 2021 — we’ve already seen the price of a barrel of WTI surge 24 per cent so far this year. Of course, this week’s historic winter storms in Texas haven’t helped the situation for the U.S., either: whole segments of the industry, from pipelines to refineries, have been forced to shutter due to frozen equipment and rolling blackouts.

But this uncertainty is nothing compared to the lack of clarity on the demand-side. Given the tepid recovery in economic activity, U.S. demand for oil remains eight per cent below where it sat in February last year. We know that demand will eventually come back.

Longer term, there are significant headwinds to oil and gas from the shift towards renewables, but peak oil is likely still years away. Again, looking at EIA forecasts, U.S. production is expected to increase until 2030 and then plateau, rather than crater over the subsequent two decades.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

David Rosenberg says Canada's housing market in a 'huge bubble'\u0027This might be one of the biggest bubbles of all time\u0027
Source: nationalpost - 🏆 10. / 80 Read more »

David Rosenberg: What happens when you analyze cash, the lifeblood of any business, rather than earningsSectors with high FCF yields indicate more financial freedom to grow shareholder value or cash that can safely be distributed to investors EconguyRosie Growth of free cash flow or growth of retained earnings is better metric to estimate the potential of the company. If you are only focused on free cash flow, then better for that company to dole out huge dividends rather than a dumb CEO shoving that cash down the drain.
Source: nationalpost - 🏆 10. / 80 Read more »