October 17, 2018

 

https://vimeo.com/297688064/38eef282a2

Click here for a PDF version of the webcast presentation slides.
 
During the Global Energy webcast, our Portfolio Manager Will Riley discussed: 
  • Oil inventories continue to tighten, keeping spot oil prices elevated above $70/bl 
  • Global oil demand growth for 2018/19 has seen positive revisions, despite EM troubles 
  • US shale supply growing as expected, though Permian infrastructure constraints have emerged, which will limit growth in 2019 
  • OPEC now raising production to prevent an oil price spike, in the face of collapse in Venezuelan production and renewal of sanctions against Iran 
  • Free cashflow generation improving for energy equities, with capital discipline generally being rewarded by the market over growth 
  • Energy equities ahead of broad market over the last year but lagging oil price –FCF/ROCE improvements imply material upside in the sector, as do oil price valuation sensitivities