OIL STOCKS AND SECTOR ANALYSIS - APRIL 2020
Dear fellow investor,
I've taken another look at oil as the price is low. My conclusion is that I don't have to change anything and stick to my guns. I already had portfolio exposure to the industry and I'll stick to my exposure of low cost producers:-)
Oil will be volatile because of the headwinds and supply management so it is tricky - a low cost production makes me sleep well.
However, I have looked at Lundin Petroleum and Surguneft again - see how that fits you if you fancy a direct oil investment.
I'll make a video on Sunday and discuss the investment situation more in detail - have uploaded more than 50 slides - no time to write a 50 page report as I am not going to act on it more than I already have:
The short conclusion:
Long-term average oil prices will be between $30 and $60 - shale oil might suffer and offshore or deepwater - so be careful there. Low cost producers will do ok, with volatile earnings depending on the situation.
All the best,