Good timing and great start of the year! I am also not selling any of my RIG, VAL and BORR positions.
Any thoughts on natural gas? I entered a small starter position back in January in RRC that I intend to increase in upcoming dips. I believe it is a matter of time when US and EU prices converge (2025+ timeframe).
Natural gas 'convergence' thesis is interesting. I like that NA prices are so low now that producers are being forced to shut in, which probably marks a good entry point. My only concern is that US oil production is getting gassier, which perhaps puts a cap on how high prices can go (until LNG export capacity comes online in 2025, as you mentioned). In the meantime, storage is still elevated and weather models can cause very sharp moves. I just haven't spent enough time to dig into the longer-term thesis and develop the conviction to add any positions. I'll try to spend some time in the coming months to research it more
Good timing and great start of the year! I am also not selling any of my RIG, VAL and BORR positions.
Any thoughts on natural gas? I entered a small starter position back in January in RRC that I intend to increase in upcoming dips. I believe it is a matter of time when US and EU prices converge (2025+ timeframe).
Natural gas 'convergence' thesis is interesting. I like that NA prices are so low now that producers are being forced to shut in, which probably marks a good entry point. My only concern is that US oil production is getting gassier, which perhaps puts a cap on how high prices can go (until LNG export capacity comes online in 2025, as you mentioned). In the meantime, storage is still elevated and weather models can cause very sharp moves. I just haven't spent enough time to dig into the longer-term thesis and develop the conviction to add any positions. I'll try to spend some time in the coming months to research it more