- Crude oil spiked to $50 on Tuesday as Saudi Arabia and Russia made a firm agreement to maintain low oil production.
- Forward estimates indicate that oil stocks will likely draw for most of 2021 as demand recovers faster than supply.
- The expected draw on oil storage this year may lift crude back to the $60-80 range where energy companies are likely far more profitable.
- From a long-term standpoint, it seems that global production levels are peaking due to low investment and exploration activity in recent years.
- With the energy giants in IXC trading at very low valuations and high yields, the long-term outlook for energy investing appears strong.
For further details see:
IXC: Expect Major Crude Oil Drawdowns In 2021