Albo’s Ball and Chain

Well in one sense things are turning as I was hoping they would. The price of Brent is climbing as the macro demand v supply situation is being reassessed….. while at the same time the hype that has driven the rest of the market (interest rate and AI related ) has lost some momentum. This should be driving a rotation into energy stocks - yesterday this happened to a minor extent but it’s difficult to get too excited…..big US oilers Chevron and Exxon have actually moved into the green ytd - we’re well shy of that.

It’s clear why stocks like WDS and STO are languishing - it’s because they operate in a country that has become so messed up with its own woke BS that it’s becoming a place where businesses in certain industries just can’t be sure about when and where the rug will be pulled out from under them. This creates terrible uncertainty and is like a freaking ball and chain on the stock price.

The market is nervous about boards being infiltrated by woke activists that view profitability as a side issue (woke superfunds now pulling this stunt)…..it’s nervous about new dreamt up taxes….its nervous about projects being massively delayed for all manner of BS environmental reasons.

Seriously - anyone with half a brain understands that oil and gas is crucial to the transition. That half brain unfortunately is impossible to find across the current federal government…..they seem hellbent on destroying this industry.

The WDS stock price was green yesterday in a sea of red (a typical contra performance and one of the reasons I hold it) however it should be comfortably $33 by now given the Brent price - you can thank this pathetic Albanese government (and the politically hostile operating environment it has created) for the fact that it’s not.

I’ll stick with my holding for now - yesterday was the glimmer of promise I needed - but while I’m still confident of cashflows going forward I continue to worry about increases in taxes and endless woke interference eating into the bottom line.

Ps Hey to finish on a slightly more positive note - the driving season is coming up in the northern hemisphere- I’ve never noticed it amounting to much but the Yanks love to talk about it as a driver of demand for oil …..we can all hang our hopes on that for the next little while I guess!