29 min
Analyst perspectives: Global energy markets – Lulu Xiong and Jin Hwang FidelityConnects
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- Investissement
Today on the show, we welcome Equity Research Analysts Lulu Xiong and Jin Hwang. They provide a global tour of energy markets, including a discussion on tailwinds and headwinds for energy companies today. Jin claims that there is currently a substantial fear regarding OPEC due to a large amount “sitting on the sidelines”. Its producers may be inclined to increase production however due to the recent major increases in oil prices. Oil prices were fundamentally driven at the start of 2024, although over the last couple of months we’ve seen an uptick primarily due to a risk premium aspect. The current prices are sitting well above the marginal cost of production, which will eventually lead to a correctional response. In regards to Capital Expenditures, there is only a finite amount of tier one economic resource. The transition into the second phase of resources could potentially begin before the decade is finished, and this is when CAPEX budgets will begin creeping in and the need for rebuilding will become paramount.
Recorded on April 12th, 2024.
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.
Today on the show, we welcome Equity Research Analysts Lulu Xiong and Jin Hwang. They provide a global tour of energy markets, including a discussion on tailwinds and headwinds for energy companies today. Jin claims that there is currently a substantial fear regarding OPEC due to a large amount “sitting on the sidelines”. Its producers may be inclined to increase production however due to the recent major increases in oil prices. Oil prices were fundamentally driven at the start of 2024, although over the last couple of months we’ve seen an uptick primarily due to a risk premium aspect. The current prices are sitting well above the marginal cost of production, which will eventually lead to a correctional response. In regards to Capital Expenditures, there is only a finite amount of tier one economic resource. The transition into the second phase of resources could potentially begin before the decade is finished, and this is when CAPEX budgets will begin creeping in and the need for rebuilding will become paramount.
Recorded on April 12th, 2024.
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.
29 min