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In fact, oil is now trading at its highest levels since 2014. Equally impressive, the record inventory gluts have been completely worked through, and we are at inventory levels that are below historical averages. Demand is already back to pre-pandemic levels, and there is another looming catalyst for demand as travel remains below pre-pandemic levels and could return to previous levels if/when the virus situation continues to improve.
From the supply side, CAPEX remains low despite higher prices and has been low for the last few years. This means that oil is likely in the early stages of a multi year bull market. This week’s featured stock under $10 – TransGlobe Energy (TGA) – is well-positioned to benefit from these trends.
