Feature Article

West Texas Intermediate and Brent oil prices sank below $80 and $85/bbl respectively in recent sessions, the lowest trading levels since January just before Russia’s invasion of Ukraine.

When the market sells off, stocks of dividend cutting companies always suffer most. That goes double in a real bear market, even one where the energy sector appears likely to bottom first and suffer least.

Here are our answers to five key questions facing energy investors as summer 2022 winds up. We hope you enjoy it.

All of our recommended Actively Managed Portfolio and High Yield Energy List members have now reported calendar Q2 numbers and updated guidance. Here are the highlights on their generally solid performance and our current advice for each position.

We’re still waiting for our first Energy and Income Advisor coverage universe dividend cut for 2022. That compares starkly to the 93 companies that reduced payouts at least once during 2020 and 2021.

The dollar, pipeline regulations, Biden, the mid-terms, Saudi Arabia, Big Oil’s “greed,” and the war in Ukraine…

The mainstream and financial media’s efforts to explain the wild swings in crude oil so far this year are apt to touch on all these emotional hot-button issues while largely ignoring the fundamentals that truly drive commodity cycles: Supply, demand, and price.

We’re still waiting for our first Energy and Income Advisor coverage universe dividend cut for 2022. That compares starkly to the 93 companies that reduced payouts at least once during 2020 and 2021.

Benchmark North American oil prices began Q2 2022 around $100 a barrel. They closed at slightly less than $106, after trading as high as $120 plus and as low as $93. That compares with a mid-60s to mid-70s price in the year earlier Q2.

We hosted a live 30-minute presentation for MoneyShow, highlighting our big picture outlook on a range of topics as well as top recommendations.