Oil prices fell in early March, raising questions about the sector’s outlook.
Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, said his bullish stance remains unchanged.
“I think what we’ve seen is going long oil and short bonds as a hedge against inflation is a very common trade, and the likes of Silicon Valley Bank and Credit Suisse (NYSE:CS) We started having problems), and that’s what you saw, you saw people covering bond shorts and liquidating oil,” he told Investing News Network.
Crude oil prices fell by about US$10 over the week, equivalent to about 14%, but importantly demand was not affected.
“In my opinion, it always creates opportunities,” Nuttall explained in an interview. It gives us the opportunity to build.”
In his view, going long oil stocks is the most attractive investment opportunity today for those who are bullish on commodities and see significant price gains, “especially Canada and heavy oil,” he notes. bottom.
Mr. Nuttall said last December that oil prices could well exceed $100 a barrel in 2023. He expects inventories to dwindle to the point where supply can’t keep up. In that scenario, prices must rise enough to kill demand.
“We need oil prices to be so high that people can’t afford to take their kids to the Caribbean…and I believe that’s where we’re headed. $180.” Mr Nuttall said.
“When we get there, I will leave no answer. I think that there.”
To learn more about Nuttall on oil supply, demand and prices in 2023, see our interview above.
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Securities Disclosure: I, Charlotte MacLeod, have no direct investments in any of the companies mentioned in this article.
Editorial disclosure: Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect those of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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