Mar. 6 at 6:36 PM
$DVN I had planned to sell half my position in the low 50's last weekend, expecting a huge gain, but with essentially zero gain over the past week in spite of crude soaring, I bought more today at
$44.70. This company produced earnings in 4Q25 that translates to a 13.6 P/E ratio with crude oil averaging around
$59/bbl. While I don't think
$90/bbl will hold over the long term, it's not going back below
$60/bbl. The much ballyhooed oil glut of sanctioned oil sitting on tankers will be drawn down, and OPEC is nearly out of spare capacity. And let's not forget that
$75 oil adjusts for inflation to ~
$58 back in Trump's first term. He's going to have to give up his dream of
$50 oil in 2026 and cut inflation by taking a bigger axe to cut government spending, which was the main cause of high inflation under Biden.
