Oil and all commodities have significant upside - Dec 13

[dan_s]

This is why I think we have just seen the beginning of significant rotation of capital from over-hyped tech companies to companies that produce raw materials and energy. Companies that hold a lot of proven reserves and large inventories of development drilling locations should draw a lot of attention.

AN EPIC COMMODITIES BOOM IS COMING
BY TYLER DURDEN
SATURDAY, DEC 12, 2020

Demand for commodities, tangible assets and the companies that mine, manufacture and transport them is about to blow sky-high predicts, Steen Jakobsen, Chief Economist and CIO at Saxo Bank.

He bases this prediction on several factors.

First, the digital world does not exist independently from the physical world. And the massive success of virtual platforms over the past several decades has now reached a point where the infrastructure to source, build and deliver the products they sell is becoming a serious constraint.

Second, governments are becoming more concerned about social equity and stability. Steen predicts a significant increase in federal spending on ‘green’ infrastructure to drive jobs and upgrade capacity for commerce.

Third, Steen believes the market is not pricing in the prior two factors.

So he expects a price-boom to occur once investors wake up to the fact that commodities haven’t been this undervalued relative to other financial assets for at least 50 years.

Put simply, the success of digital platforms is now creating crushing demand for real "stuff"...

[dan_s]

A major winter storm by Wednesday should make the week ending December 18th the first triple digit draw from natural gas storage.

See: https://weather.com/forecast/regional/n ... =hp-slot-1