An interesting little phase now for WDS shareholders.The demand...

An interesting little phase now for WDS shareholders.

The demand destruction camp is back and the $A has strengthened a little. The combined effect is seeing a softening of the WDS stock price. Brent down again overnight and US oil stocks were all in retreat as well.

This all points towards further declines on Monday for WDS.

However the supply issue can easily take hold of sentiment again, as can positive news out of China, or an early European cold snap.

Whilst I’ve recently taken some profits I’m still heavily into this stock and confident in short to medium returns (though the possibility of some left field new supertax still worries me)

Should there be any short term weakness - say down into the mid $30’s- I will consider increasing my holding. This thought was strengthened by hearing from Paul Sankey on CNBC overnight. Sankey is a respected oil and gas equity analyst and Holy Moses is he bullish on oil !

He is dismissive of this weeks Brent price declines - just a short term traders thing he says. His target for Brent is $US120 in 6 months time.

Here’s a few other things he said :

- Oil and Oil stocks ‘a massive buy’ and this, right now, is THE opportunity to buy in on the pullback.

- OPEC cuts and Russian embargoes imminent to cut supply and drive up Brent price

- Northern winter coming means a demand surge just as above supply cuts impact

- The Saudi’s WANT $100 oil

- China WILL come out of their current demand restrained situation and India is a massive demand factor not properly factored in by the market.

Very bullish stuff - and only one guys view - but further confirmation (for me anyway) that WDS is a strong hold at worst moving into 2023.