Notes from Bison Energy - March 18
Posted: Tue Mar 18, 2025 7:15 pm
Oil-related equities have pulled back sharply over the past month, driven by macroeconomic concerns related to tariffs and the news that OPEC will begin unwinding production cuts. But cutting through the headlines to the market fundamentals, both the IEA and EIA report that global oil stocks have been declining in Q1, indicating an undersupplied market.
On the natural gas side, our bullish outlook remains intact, with LNG exports recently hitting a record daily high and gas prices near three-year highs. Yet, despite these positive trends, most oil-related equities are trading at near two-year lows. With oil and gas demand expected to keep rising in the years ahead, we see the recent sell-off as temporary and a strong buying opportunity for investors. As Warren Buffett put it, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
To further highlight our market outlook and the disconnect between sentiment and fundamentals, our CIO, Josh Young, recently gave a presentation on the opportunities in oil and gas equities, which you can find here: https://www.youtube.com/watch?v=GexkQ_IzFlE
On the natural gas side, our bullish outlook remains intact, with LNG exports recently hitting a record daily high and gas prices near three-year highs. Yet, despite these positive trends, most oil-related equities are trading at near two-year lows. With oil and gas demand expected to keep rising in the years ahead, we see the recent sell-off as temporary and a strong buying opportunity for investors. As Warren Buffett put it, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
To further highlight our market outlook and the disconnect between sentiment and fundamentals, our CIO, Josh Young, recently gave a presentation on the opportunities in oil and gas equities, which you can find here: https://www.youtube.com/watch?v=GexkQ_IzFlE