Oil -- WTI -- August 27, 2023

Locator: 45481WTI.  

Gloom and doom: I've read this story, it seems, so many times over the past few years, it's grown old. In addition, there are so many errors in the assumptions and so many omissions. I can guarantee you at $100-WTI there will be no shortage of oil.

Link here.

And with the current value of the dollar and cost of services to drill and complete, WTI at $100 is not overpriced.

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Oil Is Back -- Barron's

Link here.

Oil stocks have quietly been the market leaders this summer—and they should have the energy to keep the streak going the rest of the year.

With technology stocks taking a break, the Energy Select Sector SPDR exchange-traded fund (ticker: XLE) has been the best sector performer since the start of June, gaining 17% during that time. That’s well ahead of the second-place sectors, consumer discretionary and industrials, each up 12%. All three sector rallies reflect improving investor sentiment on the U.S. and global economy and the market pricing in peak benchmark interest rates.

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Oil: For Investors, It's Now A "Utility"

Some months ago, maybe two years ago, I forget, for I moved "oil" companies into my "utility" bucket with regard to investing.

"Oil" is no longer "oil."

They've now been moved to "utilities."

Apparently others agree.

We talked about this just the other day. I have no idea way "investors" are so enamored with ETFs.

See the “energy” ETF below.

Top two holdings:

• XOM, CVX: 40%
• compare with BRK-B: 40% in one stock, AAPL;
• Top seven holdings: 63%
• after that, each holding represents 1.1 percent to 3.8 percent.
• in this ETF, the managers value:
• OXY with WMB
• DVN less than KMI, HAL, BKR, OXY, and a dozen other
• MRO and APA at the bottom of the list

My thoughts:

• buy the top two or three as the anchors
• then pick three others to make up the rest
• five stocks, total, at most
• re-balance every quarter or more often if significant news released.

XLE ETF:

XLE	26 holdings - Aug 27, 2023
XOM	21.27%
CVX	18.42%
SLB	5.23%
COP	4.62%
EOG	4.51%
MPC	4.49%
PXD	4.01%
PSX	3.80%
VLO	3.45%
OXY	3.25%
WMB	3.10%
HESS	3.05%
BKR	2.63%
HAL	2.54%
KMI	2.50%
DVN	2.31%
OKE	2.12%
FANG	1.99%
CTRA	1.55%
TRGP	1.40%
MRO	1.16%
EQT	1.11%
APA	0.96%
XAEUE	0.02%
US dollar	0.02%
State Street	0.10%

Link here.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.  

Again, all my posts are done quickly. There will be typographical and content errors in all my posts. If any of my posts are important to you, go to the source.