John Eade, President of Argus Research talks to Tip TV’s Matt Brown about the factors responsible for the recent rise in oil prices, Supply-demand situation and shares his view on the energy stocks in the US.
Current equilibrium price is around low $50s
With oil at $50, producers at Permian basin are well above the breakeven; Tar sands require $80-90, offshore platforms require around $70
Argus Research is currently equal weight on the energy sector
Scope for value investing in the energy sector – Chevron, ExxonMobil, Helmerich & Payne,
Watch the full segment for more info on – what could drive oil prices back to $20 and how one could hedge for the worst case scenario.