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Energy Stocks: WDS, STO & BPT

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Energy Stocks: WDS, STO & BPT

Hi James and Team Concerns about a widening regional conflict in the middle East disrupting global crude supplies pushes oil prices higher. If you were holding energy stocks - Woodside, Santos and Beach Energy would you be using this as an opportunity to sell/trim your positions in these Energy names? or would you continue to hold any of these 3. regards Debbie

Answer

Hi Debbie,

We are never fans of buying stocks basis “situations” such as the current Middle East tensions.

With reference to the ASX oil stocks we wrote the following about Woodside (WDS) a few weeks ago:

  • “It’s important that subscribers understand we don’t regard WDS as a long-term dividend cash cow given rising capex over coming years, it’s more a commodities play. We can see WDS bouncing back towards the $27-8 area, but it’s unlikely to be on the MM Hitlist in 2024.”.

WDS has indeed now bounced ~15% as the Middle Eastern conflict escalates hence as like to practice what we preach, if we were long we would be sellers into current strength. The same applies to BPT and STO but we stress we don’t hold these stocks.

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Woodside Energy Group Ltd (WDS)
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