Re: Bullish on oil
I too am taking a long term bullish position on oil. The oil markets had two black swan events and justifiably tanked. The next move could be another leg down to $20 / barrel, not predicting anything short term.
Mid-long term I am happy to go on record saying oil will return to $45-60 / barrel. And as such, I think it is an opportunity to buy quality oil companies that 1) maintain sustaining capex + dividend at these prices and 2) have decently strong balance sheets 3) have low decline profiles. J
ust as seemingly random events created this crash, seemingly random events will create an upside narrative. Opec+ truce, Middle East unrest, COVID-19 demand rebound, who knows but it will happen in time.
