With the Russia Ukraine and the Israel Hamas war oil seems undervalued.
Warren Buffett is often a proponent to the thesis that since gold is not a revenue generating asset it is not worth as much as a revenue producing asset. Actually, gold is a revenue producing asset because once it is dug out of the ground it can be sold and generates revenue. Furthermore, the gold mining companies that mine, dig out and clear out gold deposits, pay out dividends, which is revenue to asset managers like Warren Buffett.
The same is true for oil.
With two super regional conflict raging oil does seem undervalued. Also what is going on in the Red Sea and the Yemen Houthis attacks on ships carrying oil and liquefied natural gas also exudes upward pressure on the price of oil.
Oil super majors like Exxon Mobil, Chevron, BP, Shell, Total and mid-sized oil drillers like Occidental Petroleum, Marathon Oil Corporation, Devon Energy, Chesapeake are undervalued, according to Wolfteam Ltd.'s projections and estimates.
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