The Trump/Xi summit failed to accomplish anything, the US wanted China to pressure Iran to open the SoH, China claimed they already did and yet it remains closed, furthermore China expressed a need for talks about Taiwan if further involvement from them were to happen in the US/Iran conflict, this is obviously a clear non-negotiable for the US as that would jeopardize the US chips industry, much of which would then be controlled by China. In a apparent showing of frustration, after meetings wrapped, Trump once again wrote on Truth Social "WE DON'T NEED THE STRAIT OF HORMUZ OPEN" Oil markets are responding this morning (in Europe) by sending Brent Crude Oil higher by slightly over 3%. With global stockpiles of Crude and refined products starting to fall precipitously, no apparent end to hostilities, allowing for resumption of flows through Hormuz and insufficient demand destruction to close the gap created between supply and demand, I remain extremely bullish on crude oil and reiterating my +$200/bbl price target. My bullishness on crude is expressed via a large exposure to offshore oil services and exploration and production stocks. I also hold a thermal coal position for substitution driven demand increases in Asia and a fertilizer position for shortage driven price increases.
All stock positions disclosure:
Name - Ticker - Weight % - P/L %
Valaris - VAL - 10.69% - +137.13%
Seadrill - SDRL - 10.19% - +110.19%
Noble - NE - 10.09% - +107.30%
Chord Energy - CHRD - 8.08% - +67.44%
SM Energy - SM - 8.02% - +74.67%
Matador - MTDR - 7.82% - +44.99%
Murphy Oil - MUR - 6.89% - +27.50%
Crescent Energy - CRGY - 6.56% - +55.49%
Kosmos Energy - KOS - 6.36% - +54.21%
Peabody Energy - BTU - 5.60% - +1.51%
SunCoke Energy - SXC - 5.12% - +22.26%
Comstock Resources - CRK - 5.07% - (17.79%)
GeoPark Ltd - GPRK - 5.00% - +63.26%
Mosaic - MOS - 4.84% - +0.04%
FTAI Infra LLC - FIP - 3.21% - +12.83%
