Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

Eric Nuttall: ​”We Remain Bullish” — Oil Prices, Supply and Demand in 2024

by December 19, 2023
December 19, 2023
Eric Nuttall: ​”We Remain Bullish” — Oil Prices, Supply and Demand in 2024

‘We were bullish coming into this year,’ he said. ‘And we remain bullish, just not as much as we were.’

Explaining what that means, Nuttall said that although supply was higher than expected in 2023, global inventories are at their lowest since at least 2017 after a sharp contraction in Q3. Meanwhile, oil demand remains strong.

However, the Organization of the Petroleum Exporting Countries, better known as OPEC, is in the driver’s seat.

‘(A year ago we thought) we would have been at US$100 (per barrel) oil now given where inventories are. Well, inventories got to where we thought they would directionally, but it’s the reasons how we’ve gotten here. OPEC has been involved a little longer than we thought they would. Therefore there is more spare capacity for them to have to eventually return onto the market. That puts a ceiling price in terms of how high oil can go,’ he said.

‘We think the theme for 2024 is going to be a market where US supply growth massively contracts. Demand remains strong — certainly not as strong as 2023, but we will see demand in excess of a million barrels per day, allowing OPEC to return those barrels onto the market gradually with the intent of not having inventories build,’ Nuttall added.

He has a base-case oil price of US$80 for 2024, and said it will be a stock picker’s market.

‘In general, the sector is fairly valued at US$70 and is really exciting at US$80 — that’s in general,’ he said. ‘If you can pick the right stocks, we are finding what we think are phenomenal opportunities.’

Nuttall favors Canadian mid-cap oil companies, and said they don’t need a ‘wildly bullish’ oil price to succeed.

‘We remain convinced that there remains an unbelievable opportunity in these names, especially with sentiment now at almost historic lows,’ he concluded. ‘We go through these bouts … unfortunately this sector is volatile. To compensate you for that volatility we still see very meaningful upside in these names. And we remain bullish.’

Watch the interview above for more from Nuttall on oil supply, demand and prices in 2024.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Gold Price Forecast: Top Trends That Will Affect Gold in 2024
next post
Biden and his team killed my plan to end animal tests and save bunnies

Related Posts

Strategic Business Review Update

March 4, 2025

Is Now a Good Time to Invest in...

February 5, 2025

Principal Technologies: Building an Investment Portfolio of Disruptive...

August 26, 2023

Top 5 US Oil and Gas Dividend Stocks...

January 16, 2025

Invitation to Participate in Share Purchase Plan

February 9, 2024

Canadian Critical Minerals: Advancing Bull River Copper Mine...

May 24, 2024

Visible Gold Above High Grade Cu-Au Porphyry –...

March 6, 2025

Minim Martap Project Update

February 26, 2025

Victory Battery Metals Corp. Options Kachiwiss Uranium Project...

April 19, 2024

Multiple Brines Horizons Intersected in Second Hole- Liberty...

February 13, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Best Five Sectors, #20

    • Is It A Pullback? Or is More Downside Ahead?

    • Mixed Signals on the Charts? RRG Reveals Market Rotation Tension

    • Smarter Options Trading Starts Here! StockCharts + OptionsPlay

    • Larry Williams on the Fed, Interest Rates & Markets! What’s Next?

    • Alzheimer’s Disease Treatment Stocks: 3 Biggest NASDAQ Companies

    Categories

    • Business (1,215)
    • Investing (2,488)
    • Politics (3,699)
    • Stocks (1,606)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved