Oil market update
Nine months ago Paragon Funds Management wrote about their oil bear market view on Livewire “OPEC initiates a price war; implications”(click the (VIEW LINK) ). They discussed that the US shale revolution and OPEC inaction (reluctance to cut supply) had led to oil markets being oversupplied by ~1.5m bbl/day and with global inventories at excess levels. On the back of this bearish oil price view they initiated a short position in Santos (ASX:STO) and a long position in Qantas (ASX:QAN). Fast forward to today, the oil surplus position has worsened, with oil markets currently estimated to be oversupplied by ~2.5m bbl/day. Paragon has written an update of their thoughts on the oil market and how its pricing outlook could impact some of Australia’s largest companies moving forward, specifically Santos (ASX:STO) and Origin (ASX:ORG). Click the (VIEW LINK) to read the full article (page 2)
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John co-founded Paragon in 2012 and became principal and majority shareholder from 2017. John is responsible for executing the investment strategy and managing the Paragon Australian Long Short Fund. John has had 16 years in financial markets,...