Oil is in a bull market that is just getting started. Investors have a lot of opportunity with small-cap energy stocks that are still significantly undervalued. Read more to find out why TransGlobe Energy (TGA) is our featured stock of the week.Just a little less than a year and a half ago, West Texas Intermediate (WTI) futures made history by trading in negative territory. In those days, oil was trading in negative territory. It is hard to imagine today that it will trade in multi-years.
Oil now trades at its highest level since 2014. The record inventory shortages were also remediated and are currently at levels below historic averages. The demand is back at pre-pandemic levels. However, there’s another catalyst in the works. Travel is still below pre-pandemic levels. If/when it improves, travel could be returning to its pre-pandemic level.
The supply side of the equation shows that CAPEX is low, despite rising prices. It has been very low over the past few years. It is possible that oil will be in its early years of a multi-year bull market. This week’s featured stock under $10 – TransGlobe Energy (TGA) – is well-positioned to benefit from these trends.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.