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An oil glut coupled with a COVID-induced free-fall in global demand sent energy stocks spiraling a year ago. Now, as the world begins to recover from the pandemic, oil bulls who stayed the course are enjoying big returns. “The scarier it is as a business, the better the investment prospects are,” said Josh Young, chief investment officer at Bison Interests LLC, who seeks out dislocations in the energy equity markets. With improved Canadian oil pricing and reduced concerns around pipeline capacity, Bison has been redeploying capital away from U.S. shale and into shares of Canadian energy producers including Tamarack Valley Energy Ltd. The Houston-based fund has risen about 90 per cent this year. The OPEC+ decision last week to keep output largely unchanged along with an attack on the world’s largest crude terminal in Saudi Arabia briefly sent Brent oil futures above US$71 a barrel early Monday. Futures in New York bounced between gains and losses on Tuesday, with West Texas Intermediate Crude around US$65 a barrel. Investors are increasingly confident that any oversupply will be absorbed by soaring demand as more people are vaccinated and life slowly returns to normal. “The fear of peak demand is leading us […]
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