Mar. 25 at 5:52 PM
$TALO I am new to investing in oil related stocks (so probably wrong here), but as far as I can tell (with an AI assist), the oil that Talos produces is best priced as analogous to Argus Mars, not WTI. And if oilprices dot com can be trusted, deliveries of Mars in the physical market are at
$117 a barrel today, down from
$119 yesterday. This is while WTI has been in the low
$90’s. Because Mars is the blend in the Americas that is closest to the sour blends that usually come out of the gulf, I tend to think that should the SoH remain closed, this spread ought to widen, or at least persist at a high level. It seems to me (and again I know little) that the market is pricing Talos like it is producing WTI. I am baffled because I tend to think markets are efficient and I would expect the oil markets to be extremely efficient. Anyway, if somebody has a considered view here, I’d appreciate it.
