>>21626975So far I have just been focusing on upstream producers but the more I try to forecast and understand the whole supply and demand picture the more impossible it seems to predict the oil market. In the end it all hinges on global trade and economic conditions because that's where refined products consumption comes from. But that's exactly the issue.
Refining margins have been low for quite some time now. Can they keep going lower or staying low? Yes. Will they? Hell if I know. Depends on whether we're heading into a recession next year or not. Meanwhile crude production keeps rising. So I'm not exactly an oil gigabull here, but I still think there are great E&Ps trading at attractive prices so I can't help but be long some oil and gas producers.
