While the past year has been tough overall, he believes the biggest challenge is sentiment. <\/p>\n
\u2018Nobody\u2019s here. Nobody cares. Nobody is aware of any of the bullish potential, because everybody is just focused on the narrative around, \u2018(The market is) awash in oil and we\u2019re going to fall to US$60 (per barrel).\u2019 Or I even saw US$40 the other day. You\u2019ve got to try to really tune out the noise,\u2019 Nuttall explained during the conversation. <\/p>\n
\u2018I think given how underweight people are, given how strong balance sheets \u2014 ie. business models \u2014 are today, that even at US$70, which seems to be a reasonable price to triangulate around, we can still find opportunities,\u2019 he added. <\/p>\n
Nuttall is looking for companies that have paid down their debt and have strong free cashflow. <\/p>\n
\u2018The only thing to do with that free cashflow is to meaningfully buy back shares,\u2019 he said. \u2018If you look at the relationship between share buybacks and performance, it\u2019s like mission accomplished \u2014 there\u2019s a very strong linear relationship between the companies that have been most aggressively buying back their stock and the biggest outperformers.\u2019<\/p>\n
Nuttall also said he sees investment potential outside oil stocks in the year ahead. <\/p>\n
\u2018We\u2019re looking for names with multi decades of inventory, because my belief is that the demand for hydrocarbons \u2014 oil, natural gas, coal \u2014 will grow longer and stronger than consensus believes,\u2019 he said. <\/p>\n
When asked about his final thoughts heading into 2025, Nuttall returned to sentiment. <\/p>\n
\u2018I think that\u2019s the biggest thing \u2014 sentiment is awful, fundamentals are not. Things are not perfect, but they\u2019re not nearly as bad as what consensus believes, and there\u2019s still money to be made in this sector,\u2019 he finished. <\/p>\n
Watch the interview above for more from Nuttall on oil supply, demand and prices in 2025. <\/p>\n
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n While the past year has been tough overall, he believes the biggest challenge is sentiment. \u2018Nobody\u2019s here. Nobody cares. Nobody is aware of any of the bullish potential, because everybody is just focused on the narrative around, \u2018(The market is) awash in oil and we\u2019re going to fall to US$60 (per barrel).\u2019 Or I even […]<\/p>\n","protected":false},"author":0,"featured_media":12832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-12831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12831"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12831\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12832"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}