Why Michael Thinks These Energy Stocks Have More Upside | Trade

Why It Matters

A sustained jump in energy prices could force portfolio reallocations into a neglected sector, lift miners’ and producers’ profits, and feed through to higher inflation and interest rates—affecting markets and corporate costs globally.

Summary

Rising Middle East tensions have driven oil above $100 and pushed inflation expectations higher, prompting forecasts for more central-bank tightening and elevated bond yields. Michael Gable of Fairmont Equities argues the energy sector—long underweighted by investors—is the year’s top opportunity, with oil and gas majors like Woodside poised for near-term gains and a potential re-rating. He also highlights uranium developers (Banaman, Paladin) and coal names as beneficiaries of higher fossil-fuel costs and renewed interest in alternative baseload power, noting specific technical breakout levels (Woodside into the high-30s, Banaman above $5, Paladin toward $17–$18). Overall, Gable sees the conflict accelerating an already constructive setup for energy and commodity equities.

Original Description

Rising oil prices and ongoing Middle East conflict continue to impact global energy markets, with significant implications for investors. Michael Gable from Fairmont Equities views the energy sector as the strongest opportunity this year, citing robust demand and persistent supply concerns—even before the recent geopolitical escalation. Gable notes oil prices have surged past US$100, approaching technical resistance, but believes fundamental drivers remain intact for a potential long-term breakout into higher trading ranges.

Gable highlights Woodside (ASX:WDS) as a key beneficiary on the ASX, pointing to its leverage to rising oil and gas prices. According to Gable, underweight positions in the energy sector could prompt investors to boost exposure, driving further gains for Woodside as higher-for-longer prices support profitability. Gable also draws attention to uranium stocks, particularly Bannerman Energy (ASX:BMN), which he suggests is positioned for a strong move if it can break above the $5 mark. Paladin (ASX:PDN) is viewed as being in a consolidation phase, offering a buying opportunity with potential upside if it surpasses technical resistance.

Turning to coal, Gable suggests both Whitehaven Coal (ASX:WHC) and New Hope (ASX:NHC) have broken out of multi-year consolidations. He expects continued strength as delayed renewables rollout and persistent demand support higher coal prices.