APC - Permian Pure Play Merger And Takeover Targets
The trade war with China has caused investors to overlook catalysts for firming oil prices and put another chill in oil stock prices. The trade war will end eventually. In the meantime, China is stimulating and the U.S. Federal Reserve is about to end QT - Quantitative Tightening.
Catalysts for rising and firming oil prices the next 12-18 months include:
- Iran sanctions enforcement
- Potential escalation of the Middle East conflict (as I discussed President Trump validating Iran conflict thesis)
- Venezuela and other oil production disruptions set to last at least a year
- Shale production