Miller/Howard Investments
Miller/Howard Commentary
Income-Equity—Energy Sector
Greg Powell, Portfolio Manager  |  Full Bio (PDF)
John E. Leslie III, CFA, Portfolio Manager  |  Full Bio (PDF)
MORE:  Income-Equity—International vs Domestic


Oil prices are notoriously difficult to forecast, but the setup going into 2018 seems good. Global demand continues to grind higher, and supply growth seems to have stabilized. An oil price in the 60s is high enough to incent drilling in the US, a positive tailwind for our midstream companies.

Looking at energy prices, I've been one of the most bearish portfolio managers at the firm on energy, but I'm getting more bullish. Right now, inventory levels are declining. The potential for supply disruption in the Middle East in oil producers is increasing, and Venezuelan oil production is at a 16-year low. This is all contributed to oil prices firming, but I still think they reflect a lot of complacency on supply issues. Global economic growth and presumably oil consumption have been increasing. The stock prices remain low and don't reflect the potential for higher prices.


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