- The oil markets move in cycles, and we are just exiting one of the worst bear market cycles in history.
- Energy investors have gone through a lot. At the end of 2019, the light was showing up at the end of the tunnel only to be hit by an incoming train (COVID-19).
- But the drivers of the oil bull thesis were magnified this year due to COVID-19. The US alone will create a delta of ~3 mb/d to future supply/demand forecasts.
- The key to surviving the next part of the cycle is to manage expectations well and understand the cyclicality of these swings.
- So while the gains in the energy sector in the last month look great, they are far from done.
For further details see:
Incoming Oil Bull Market: Don't Miss The Forest For The Trees