Thursday, June 24, 2021

Xinte Energy (1799.HK) - Breakout of short term downtrend, could head for next target at 16.50.

 


A company that provides of solar energy and wind power solutions, last done 14.82.
Breakout of short term downtrend, could head for next target at 16.50. A convincing break above 16.50 could see the stock heading towards its next target at 20.00.
All posts and charts are for educational and illustration purposes only
Monday, June 14, 2021

Bullish Long Term View on Crude Oil (Stay bullish on Oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc)

 


My bullish view on the oil price and oil stocks , which as previously discussed here is likely to act as a catalyst for an escalation of the inflation scare in coming months, is based on both booming demand and, even more importantly, a growing lack of supply.

 

The One reason demand is running well ahead of supply is not only not just coming from a re-opened American economy, but also the fact that American households continue to be beneficiary of the fiscal stimulus cheques that will expire in Sep 2021.

 

Meanwhile, investment in exploration outside OPEC has been declining since 2013 when the shale boom went bust as US move aims to be carbon neutral by 2050.

 

The downturn in investment was further escalate reluctance by financial institutions to be seen funding such projects that is not climate friendly exacerbating the lack of supply. This is likely to lead to a structural decline in upstream investment.

The US Energy Information Administration’s (EIA) latest Monthly Drilling Productivity Report shows that US shale oil production has been declining month on month.

 

As discussed in my earlier post a week ago, crude oil has turned bullish on a longer term view when it broke out of its long term downtrend channel in Apr, it should be heading for its near term target at USD 75 and 83 in the medium term

 

Stay bullish on oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc.


My bullish view on the oil price and oil stocks , which as previously discussed here is likely to act as a catalyst for an escalation of the inflation scare in coming months, is based on both booming demand and, even more importantly, a growing lack of supply. 


The One reason demand is running well ahead of supply is not only not just coming from a re-opened American economy, but also the fact that American households continue to be beneficiary of the fiscal stimulus cheques that will expire in Sep 2021. 


Meanwhile, investment in exploration outside OPEC has been declining since 2013 when the shale boom went bust as US move aims to be carbon neutral by 2050. 


The downturn in investment was further escalate reluctance by financial institutions to be seen funding such projects that is not climate friendly exacerbating the lack of supply. This is likely to lead to a structural decline in upstream investment. 

The US Energy Information Administration’s (EIA) latest Monthly Drilling Productivity Report shows that US shale oil production has been declining month on month. 


As discussed in my earlier post a week ago, crude oil has turned bullish on a longer term view when it broke out of its long term downtrend channel in Apr, it should be heading for its near term target at USD 75 and 83 in the medium term 


Stay bullish on oil stocks like Sembawang Marine, Rex International, PetroChina, Kunlun Energy etc. 


Sembcorp Marine (SGX: S51): last traded at S$0.205.

Rex International (SGX: 5WH): last traded at S$0.19.

PetroChina (0857.HK): last traded at HKD 3.57.

Kunlun Energy (0.135.HK): last traded at HKD 6.94.


 


All posts and charts are for educational and illustration purposes only

GSS Energy - Broke out from its 6 years downtrend today. Could be heading for the following targets 0.091, 0.104 and 0.122.



All posts and charts are for educational and illustration purposes only