Oil-related equities have pulled back sharply over the past month, driven by macroeconomic concerns related to tariffs and the news that OPEC will begin unwinding production cuts. But cutting through the headlines to the market fundamentals, both the IEA and EIA report that global oil stocks have been declining in Q1, indicating an undersupplied market.

On the natural gas side, our bullish outlook remains intact, with LNG exports recently hitting a record daily high and gas prices near three-year highs. Yet, despite these positive trends, most oil-related equities are trading at near two-year lows. With oil and gas demand expected to keep rising in the years ahead, we see the recent sell-off as temporary and a strong buying opportunity for investors. As Warren Buffett put it, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

To further highlight our market outlook and the disconnect between sentiment and fundamentals, our CIO, Josh Young, recently gave a presentation on the opportunities in oil and gas equities, which you can find here:

Media Update

In February, Josh appeared on the MiningStockEducation podcast to discuss the cyclicality of the oil market and the outlook for production. Later in the month, he joined the Commodity Culture podcast, highlighting the disconnect between low sentiment in the oil and gas sector and declining inventories and new LNG export terminals, two factors that indicate a massive bull market in energy could be just over the horizon.

More recently, Reuters featured Josh’s insights on how rising drilling costs are prompting producers to scale back capital spending, contrasting with Trump’s "Drill Baby Drill" agenda. He also spoke at Oliva Gibbs Energy Law Firm’s oil and gas market outlook presentation, where he provided his perspective on the industry’s current state and its trajectory for the rest of the year.