Matt Warder: Bullish on Oil, Bearish on Thermal Coal

Interview conducted by Charlotte McLeod; article text by Olivia Da Silva.

Despite oil prices facing a tough go, Matt Warder, director of research and product development at Energy Capital Research Group, is optimistic that the commodity will bounce back by next year.

“In the short-term, I think what the market’s telling us is we’re probably heading back down to US$60 temporarily, but in general, demand is projected to grow pretty substantially next year and two-thirds of that growth is going to come from right here in the US,” Warder told the Investing News Network (INN) at the New Orleans Investment Conference.

“We’ll be back in the 70s by Q1 of next year if not sooner, and then we see WTI probably touching 80 around mid-year by the time we get back into demand season.”

Flipping the conversation to thermal coal, Warder was asked about the difficulty of generating new projects with an evolving environmental landscape. He explained that “there’s just little appetite for investment in projects, and there’s little appetite for investment in coal fired power outside of China.”

“I don’t think there’s really much of a need for large-scale projects for thermal coal going forward, I think that on an as-needed basis, thermal coal-fired power plant builds will determine the investment community’s appetite for that sector in general,” Warder said.

Listen to the interview above for insight from Warder on oil, coal and all things energy. You can also click here to see the full New Orleans Investment Conference playlist on YouTube.

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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.