Energy Stocks Are Still Cheap? Eric Nuttall Explains the Opportunity

The ongoing Hormuz energy crisis constitutes the largest supply shock in history, removing 12 to 14 million barrels per day from global markets and threatening record-low inventory levels. While broader equity markets remain largely indifferent, this supply-demand imbalance necessitates a significant price correction, with an $80 WTI floor anticipated for the medium term. Eric Nuttall, partner at Nine Point Partners, emphasizes that North American energy producers—specifically those with long-lived reserves and disciplined share buyback programs—are currently undervalued relative to this structural reality. Despite political headwinds and infrastructure bottlenecks in Canada, the sector remains a critical investment opportunity as global demand continues to grow. The current market apathy ignores the inevitable depletion of strategic buffers, setting the stage for a major revaluation once the full gravity of the supply hole becomes undeniable.