Crude Oil Dec 32 (CLZ32.NYM)
| Pre. Settlement | N/A |
| Settlement Date | 2032-11-19 |
| Open | 63.10 |
| Bid | 60.07 |
| Last Price | 62.34 |
| Day's Range | 63.10 - 63.10 |
| Volume | |
| Ask | 63.70 |
- Yahoo Finance Video
The US is 'making history' with energy demand. Expert explains
Energy policy was a key debate topic between presidential candidates Vice President Kamala Harris and former President Donald Trump. Tortoise senior portfolio manager and managing director Rob Thummel joins Market Domination to discuss the future of US energy policy. "We do believe in an all-of-the-above approach to really providing energy supply. Energy demand is just going to go up, and it's going to go up every single year... We're really making history here, a little bit in the US, as the US being the largest producer of energy in the world, the largest exporter of energy in the world. This is really significant," Thummel tells Yahoo Finance. He explains that the US has a lot of low-cost, low-carbon energy options, which is a "foundational element of growing economies." Thus, he believes that as US oil helps grow other economies, it's also contributing to domestic growth. "That's partially why you're seeing the potential for AI development here is because the low-cost energy that's in the US, that's partially why we'll have advanced manufacturing come back to the US, is because of the low cost of energy," he adds. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance Video
Portfolio manager shares his top oil, energy stock plays
Tortoise senior portfolio manager and managing director Rob Thummel joins Market Domination to discuss the best energy plays and how oil commodities (CL=F, BZ=F) may be affected by Hurricane Francine. Thummel is bullish on energy infrastructure, explaining that it has performed "really well" this year while still trading at a discount relative to its historical valuation. He points to names like Williams Companies (WMB), Oneok (OKE), and Targa Resources (TRGP) as examples, noting they "still have a lot of room to run" and will offer investors a 4 to 5% dividend yield that will only grow. He notes that Energy Transfer (ET) offers about an 8% dividend yield and predicts it to grow between 3% and 5%. He argues that these energy companies "generate steady, consistent earnings," adding, "then they convert those earnings into cash and then turn around and pay that cash back to the shareholder in the form of higher dividends and stock buybacks." As Hurricane Francine barrels toward Louisiana, Thummel notes that 48% of US refining capacity exists on the Gulf Coast. However, the hurricane shouldn't be too much cause for concern as it appears to be moving further east. He notes that refinery operations in Baton Rouge will likely have to either shut down or reduce production temporarily, but other refineries should be able to operate as normal. "Keep in mind, this is not the first hurricane, obviously, that these energy companies have gone through. They've done a really good job. Management teams have done a really good job of making their assets more hurricane-resistant. And so that's really benefiting all of us because we don't have to worry about these long disruptions that cause significant price hikes... during the hurricane season itself." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
- Yahoo Finance Video
China's weak oil demand isn't serious issue: Portfolio manager
Oil (CL=F, BZ=F) prices surged in Wednesday's trading session amid worries that Hurricane Francine would disrupt US production in the offshore region for an extended period. Tortoise senior portfolio manager and managing director Rob Thummel joins Market Domination to discuss the movement and the overall state of the oil market. Thummel notes that some production has been shut down in the Gulf of Mexico due to the hurricane. This production area amounts to half a million barrels per day, which will take some supply off the market and drive prices higher. However, he notes that the larger issue at hand is that oil appears "disconnected from the fundamentals." "Obviously there's not a lot of positive sentiment toward oil prices right now... Demand has come down a little bit, but still, oil demand is still going to be at least a million barrels a day, maybe more than that, globally, as far as growth is concerned," Thummel tells Yahoo Finance. He draws attention to the fact that OPEC+ has decided to keep additional supply off the market, keeping supply "constrained." He argues that fundamentally, "oil looks pretty good," despite its price challenges. He highlights that the global energy demand is increasing, and is on track to set record highs both for this year and 2025. However, Chinese demand is lower despite the nation being one of the largest consumers in the world. While Thummel sees this as "concerning," he notes that the US, Saudi Arabia, and other emerging markets are starting to consume more oil, which will offset some of the weak demand from China. In addition, he argues that "Chinese demand may be surprised to the upside" in the second half of 2024. While it may not be at its historical levels, he believes it could come in higher than currently expected. If that happens to be the case, he estimates Brent prices to hover around the high $70s to low $80s by the end of the year. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Melanie Riehl
