Big Oil Buyback
These days, big oil is no longer expanding at all cost. Financial discipline is key and the popular names like $SHELL PLC(SHEL.UK)$ and $Occidental(OXY)$ are giving back shareholders via buybacks and dividends.
Consistent with Mr Buffet, buyback benefits long term shareholders given improved RoE. In turn, dividend per share will go up assuming the return to share holders is constant. Shell launched a buyback of USD 4b until release of Q4 '22 results. Check out the screenshot whereby the average buyback price is USD 55 upwards.
I am near term bullish on $Light Crude Oil - main 2212(CLmain)$ given the end of US SPR release and Russia oil cap. In today's world, commodity is no doubt the better hedge against inflation. Plan to sell puts to collect daily premium until Dec. If the situation of China becomes clearer, it will be another boost to oil price.
Reminder to retail investors, risk control is important.
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