Oil market fundamentals could make E&P companies a good equity investment

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Oil market fundamentals could make E&P companies a good equity investment

OPEC and its allies slashed production targets for the next 14 months by 2 million b/d, signaling that the bloc is set on managing global production in a way that maintains a higher oil price, according to market analysts. At higher prices, oil companies are continuing to produce enormous amounts of free-cash-flow, and that bodes well for long-term investors in the sector like Equinox Partners, according to Sean Fieler, the company's president and chief investment officer.

Fieler joined the podcast ahead of the Oct. 5 OPEC meeting, but reports were already circulating that a production cut was coming. He gave his take on the role OPEC is playing in the oil market, where he sees oil prices heading in the near- and long-term, and how geopolitics and domestic policies, including the growing ESG movement, are impacting the investment outlook for the oil industry. Spoiler: he thinks "it's a great time to be an equity investor" in this sector.

Stick around after the interview for Chris van Moessner with the Market Minute, a look at near-term oil market drivers.

Related content:

OPEC+ chops oil quotas, in another snub to the US, as White House threatens retaliation

US upstream leaning less on financing, more on cash in 'tighter' financing climate (premium content)

Oil market ponders price floor amid demand destruction (premium content)

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