Introduces topic of crude oil hitting $89 and asks how current energy sector outperformance differs from previous shocks.
speaker1
Neal Dingmann
Current stock performance not terribly different; stocks tracking 12-month strip price ($67) not spot ($89).
Neal Dingmann
If Strait of Hormuz stays down or other facilities go down, backwardation could increase, leading to more pronounced upward movement in oil and gas stocks.
Asks about biggest opportunities in energy sector given pre-existing commodity bull market and AI demand.
speaker1
Neal Dingmann
Best upside on oil side, particularly Permian players Devon and Diamondback as lowest cost operators.
Asks about risks or counter trends to watch in energy.
speaker1
Neal Dingmann
Key risk is demand, not supply; watching if US demand growth remains at 1-2%.