Note from OilPrice.com - Oct 11

[dan_s]

Just one year ago, Brent prices traded in the $30s, today, Brent prices are nearing $85 as crude oil markets continue to tighten as a result of robust demand, bullish OPEC+ output decisions, and a gas-to-oil switch that could add up to 2 million bpd in temporary demand.

Citi Group Equity Research Says Oil May Climb to $90/bbl as Stockpiles Shrink This Winter

But the rapid rise in crude prices is nothing compared to the rally in natural gas, which has put even cryptocurrencies to shame. The 200% year-to-date rally in U.S. natural gas prices has taken the markets by surprise, and as we approach heating season, there’s very little extra supply coming online.

U.S. natural gas producers have already seen their share price climb over the last couple of months as inventories remain below the 5-year average.

But with only a few weeks left of ‘injection season’, gas markets are set to remain tight throughout the winter, and while this is bad news for utility companies and your heating bill, it is good news for those that are investors in North American natural gas plays.
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InPlay Oil (IPOOF) will be hosting a Houston luncheon for us on October 26th. If the price of WTI oil averages $80/bbl in 2022, my valuation of IPOOF will increase to at least $3.25US per share. The stock is trading for $1.47US at the time of this post. This luncheon is limited to 40 attendees. It is free for all current EPG members and will be $30 for non-members. Hemisphere Energy (HMENF) will also be hosting a Houston luncheon for us in late November. It is a pure play on oil and should be a triple for us if WTI averages $80/bbl. I have very high levels of confidence in my forecast/valuation models for these two Canadian Juniors, which I have followed for several years.