- Oil prices have been extremely volatile, but it's more important than ever to focus on the fundamentals.
- Prior to the Russia/Ukraine war, oil market balance for Q1 2022 was headed for -2 million b/d versus consensus of +0.6 million b/d.
- This is largely on the back of OECD oil demand surprising to the upside.
- The oil market was headed for a persistent deficit regardless whether or not Russia lost crude exports, and that's the real kicker energy investors need to focus on.
- With energy stocks still yielding free cash flow over 20%-plus, keep your eyes on the prize. Stay invested and ignore the noise.
For further details see:
Oil: Keep Your Eyes On The Prize, Don't Let The Volatility Get You