QUICK LOOK AT OIL PRICES. WE DID SEE CRUDE SLIPPING TODAY, BUT THAT'S AFTER 4 STRAIGHT WEEKS OF GAINS. OUR GUEST IS BULLISH ON THE SECTOR, ESPECIALLY WHEN IT COMES TO SOME CANADIAN COMPANIES WERE JOINED BY ERIC NUTTALL, PARTNER AND SENIOR PORTFOLIO MANAGER NINEPOINT RICK, ALWAYS GREAT TO SEE YOU. SO WE HAVE ALL OIL HAS BEEN RISING FOR ABOUT A MONTH, BUT IT'S STILL WELL DOWN FROM THE FALL OF LAST YEAR. WHY IS THAT? >> SURE FIND IT OUR THESIS HAS BEEN THAT WE WOULD HE DID ALL WELL SO FAR THIS YEAR. I THINK WE'RE ACTUALLY ABOUT A DOLLAR HIGHER THAN THAT. SO FAR WE'VE SEEN OIL RECOVER FROM THE STRENGTH FOLLOWING THE OPEC MEETING BACK IN JUNE WITH A MARKET TO DIGEST. HOW DID I JUST THE MESSAGING FROM OPEC THAT YOU KNOW, MARK AND A CONDITION DEPENDENT, THEY WILL BE RETURNING SOME THERE CURTAILED VOLUMES, BUT WE REMAIN IN A VERY, VERY HEALTHY PRICE LEVEL FOR OIL PRODUCERS. AND IN FACT, WE DON'T SEE A GOING MUCH FURTHER THAN CURRENT LEVELS. SNOW, WE A PRICE ABOUT 85 $85. WTI, 85 TO $90. GRANT IS REASONABLE FROM NOW TO THE END OF 2025 N OR C SAYS REALLY REVOLVES AROUND A FEW KEY THINGS. ONE DEMAND REMAINS FINE. IT'S NOT SHOOTING THE LIGHTS. AND THERE ARE AREAS OF WEAKNESS. SUCH IS ONGOING WEAKNESS. YEAH, JUST DEMAND IN CHINA. BUT THE OTHER AND JET FUEL REMAINS VERY STRONG. THINK I SAW MORNING, THE TSA REPORTED RECORD NUMBER OF PEOPLE FLYING OVER THE WEEKEND, DEMANDS FINE. WHEN WE LOOK AT SUPPLY, WE SEE THE U.S. RECOUNT CONTINUE TO FALL FROM ABOUT 500 TO 479 U.S.. SHALE PRODUCTION IS DOWN SO FAR THIS YEAR FROM DECEMBER LEVELS. WE SEE THE OPEC RECORD COMPLIANCE IN THE MONTH OF JUNE. AND SO, YOU EXPRESSES ITSELF IN INVENTORIES. WE HAD INVENTORIES FALLING THIS YEAR REACHING RECORD LOW LEVELS DEPENDING UPON VOLATILITY MARKET BALANCES, PRICING CETERA. TO BEGIN TO BRING BACK THE BARRELS A DAY FOR MOVE FROM THE MARKETPLACE AND SLOWLY GRADUALLY RETURN THEM THROUGHOUT 2025. SO WE WERE VERY, VERY CONTENT. I I WAS SAYING THAT HE'S ON TWITTER LIKE EVERY DAY ABOVE $80 OIL IS A PHENOMENAL DAY BECAUSE THE FREE CASH BEING GENERATED BY THE SECTOR. HE'S UNBELIEVABLE AND STILL UNDERAPPRECIATED. >> ABOUT THE FACT THAT RUSSIAN OIL IS STILL HAVING APPARENTLY NO TROUBLE MAKING IT ON TO THE WORLD MARKETS. ABSOLUTELY. IRANIAN PRODUCTION TO IRANIAN EXPORTS HIT. >> RECORD-HIGH THINK LAST MONTH OF THE VOTES OUT OF PRODUCTION, 3.5 MILLION BARRELS PER DAY. AND IT SPEAKS TO THERE IS TALK AND THEN THERE'S ACTION. U.S. ADMINISTRATION, YOU'VE GOT AN ELECTION THIS NOVEMBER. THEY DO NOT WANT A HIGHER GASOLINE PRICE AND THEY WILL DO ANYTHING THAT THEY CAN OR NEED TO TO HOW THEY ALL PRESENT GUSTING PRICE NOT SPIKE UP. SO WHEN THEY DO, YOU KNOW, THEY TALK ABOUT RUSSIAN SANCTIONS, PRICE CAPS, THEY DON'T SAY THEY ARE IN FOR SOME, THEY TALK ABOUT IRAN AND THE RED LINES AND URANIUM ENRICHMENT. RECTION, WHAT DO THEY DO TO TURN A BLIND EYE TO SANCTION ENFORCEMENT? SO REALLY, THAT IS ALL A POLITICAL THEATRE. IT IS ALL NOISE. WHAT CUT COUNTS IS INVENTORIES BECAUSE THAT IS INTERSECTION OF SUPPLY AND DEMAND. AND WE SEE GLOBAL OIL INVENTORIES DESPITE HIGH RUSSIAN PRODUCTION, DESPITE HIRING AND PRODUCTION, ETC. REACHING ALL-TIME LOW SEASON LEAD BY THE END OF THIS YEAR. >> SORRY, WHAT WAS ALL-TIME LOWS? ONE POINT PRODUCTION, ERIC. WE SEE GLOBAL OIL INVENTORIES REACHING RECORD RECORD LOWS BY THE END OF THIS YEAR. AND THAT'S VERY SUPPORTIVE. >> OF A PRICE. SO WE 3 THINK KNOW IF THERE'S A LOT OF TALK ABOUT A POLITICAL RISK PREMIUM EXCEPT ROAN, YOU KNOW, WHAT'S GOING ON WITH ISRAEL, GAZA, MAYBE LEBANON, CETERA, WE DON'T SEE THERE BEING ANY KLOBUCHAR RISK PREMIUM IN THE OIL PRICE RIGHT NOW. WHEN YOU LOOK AT WHERE U.S. INVENTORIES ARE, BUT MORE IMPORTANTLY, WORKLOAD GLOBAL OIL INVENTORIES ARE TODAY. >> THAT'S INTERESTING, THOUGH, % YOU DO THINK WHAT WE'VE HEARD BEFORE THAT THE AMERICAN ADMINISTRATION IS ANXIOUS TO KEEP OIL SLASH GASOLINE PRICES LOW. ABSOLUTELY EVERYTHING THEY DO. >> THERE DON'T LOOK AT ITS TALK. LOOK AT ACTIONS. WHEN YOU LOOK AT THE PRICE CAPS RUSSIAN PRODUCTION, THE LACK OF ENFORCEMENT ON SANCTIONS ON IRANIAN BARRELS GOING TO HAS BEEN AS WELL AND ASKING THE JOURNAL SAYING, YOU KNOW JUST TELLS OVER FREE AND FAIR ELECTION AND YOU KNOW, WILL TURN BLIND EYE, WILL EASE SANCTIONS LINES AS WOMEN PRODUCTION GO UP A LITTLE. AND I THINK IT WAS LIKE 60'S THERE. HE THREW HIS RIVAL IN JAIL. SO IT'S, VERY, VERY CLEAR YOU KNOW, YOU HAVE THE U.S. ADMINISTRATION TALKS ABOUT, YOU KURT CARTELS AND MANIPULATION WENT THEY HAVE BEEN THE BIGGEST MANIPULATOR OF OIL PRICE OVER THE PAST 2 YEARS WITH THEIR LACK ENFORCEMENT OF THEIR OWN LAWS AND RULES. AND ALSO WITH THE USAGE OF THE SPR. THE STRATEGIC POLITICAL RESERVE TO WELCOME EYES THAT TO DRIVE OIL PRICE DOWN AHEAD OF THE PRIOR ELECTION. >> I KNOW THAT YOU ARE OUT A MONTH THAT OIL AND GAS IS NOT A SUNSET INDUSTRY, BUT WE ARE AND I KNOW THE ADOPTION OF ELECTRIC SLOWED, BUT THEY ARE CARS TO KEEP GETTING MORE AND MORE IN THE UNITED STATES. >> ABSOLUTELY, YOU KNOW, WE DO SEE POLLS WHERE 3 OUT OF 10 AMERICANS ARE CONSIDERING BUYING AN ELECTRIC CAR. WE SEE LAST WEEK SAYING THAT 5 CURRENT OWNERS ATV'S WISHING OFFICE THIS THE FIRST PLACE AND IT COULD GO BACK. GOOGLE OVER TIME ARE GOING DURING THE COMMERCIAL BREAK THAT WAS OUTSIDE THE PAST 2 IS THE FUTURE ELECTORAL PROBABLY NOT. I THINK IT'S GOING TO BE, YOU KNOW, FULL ELECTRIC NOT, IT'S GOING TO BE HYBRID, BUT IT'S, BEEN THIS ONGOING DISCUSSION ABOUT MY GOD, ON THIS RAPID TRANSITION. IT'S A SUNSET INDUSTRY. ONE OF THOSE POOR GUYS OF WEST, YOU FOR WORKERS GOING TO DO BECAUSE WE'RE NOT USING THE STOPPER BLANK PLASTIC BAGS AND STRAWS AND SUCH. WITH THE REALITY THIS IS NOT A SUNSET INDUSTRY. THE GROWTH IN OIL REVOLVES AROUND A FEW KEY FACTORS. ONE IS DEMOGRAPHICS THE WORLD GROW BY 23 24% BETWEEN NOW AND 2050. SECONDLY, THE VAST MAJORITY OF THE WORLD IS NOT FOCUSED ON DECOLONIZATION. THEY JUST WANT ENERGY AFFORDABILITY AND ENERGY ACCESSIBILITY. WHEN 2.3 BILLION PEOPLE ON THIS PLANET, BYRNE, EITHER WOOD OR DRIED COW DUNG. AS THE PRIMARY COOKING WE SEE THE WORLD THROUGH WESTERN LENS. THE VAST MAJORITY OF THE WORLD IS NOT FOCUSED ON THE COVER A THEY WANT WHAT WE HAVE THE WANT, THE LIFESTYLE WE HAVE. IT IS HUGELY ENERGY ARE RELIANT, IT IS HUGELY OIL RELIES. AND SO WE THINK THE DEMAND FOR OIL CONTINUE GIRL LEAST THE NEXT 10 YEARS WHEN COMPANIES TRADING AT 15 AS HIGH AS 28% FREE CASH LEAL'S BECAUSE PEOPLE THINK, WELL, THIS IS A SUNSET INDUSTRY, THERE'S REAL VALUE IN A BARREL. PRETTY PRETTY PRETTY 5 YEARS FROM NOW. THERE'S STILL REMAINS A TREMENDOUS OPPORTUNITY IN THE CANADIAN OIL PATCH. >> ERIC, A GOOD STUFF DID THAT RELATION TO THE EV OWNERS WISHING THEY HAVEN'T BOUGHT TWITTER URGING THE OKAY. OKAY, THAT'S AMAZING. OKAY. COMING AMERICAN OUT. ALL STIC
