With $XAUUSD up today, and general commodity strength, European energy stocks have been a mixed bag lately. Some majors are consolidating gains while others are lagging. What are members' thoughts on the sustainability of current oil and gas prices influencing these equities into year-end?
I'm a bit more bullish on the majors that have diversified into renewables. They're better positioned to weather price fluctuations in traditional energy and benefit from the green transition long-term.
It's hard to make a call on sustainability when you look at the wider macro picture. Demand might soften if inflation really bites, even with supply constraints. Are we seeing smart money starting to rotate out of some of these names already?
I think we'll see continued volatility. Geopolitical factors are still huge for energy prices, and that's not going away. Could be a tough environment for consistent gains.