Jul. 28 at 12:46 PM
$FANG What price is best for energy equities and still tolerable for demand? I think 80 to 100 WTI is the sweet spot because it lets oil stocks keep throwing off strong cash, funding buybacks and dividends, without crushing demand. For names like
$SM ,
$DVN and
$FANG, that is the kind of setup you want because the business still works great and the market can keep taking the barrels. Once oil gets much higher than that, the upside may look exciting, but the better setup is likely the one where producers stay profitable and demand keeps holding in.
