Finimize - 📉 Uh oh, oil

Hi Reader, here's what you need to know for September 29th in 3:05 minutes.

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Today's big stories

Oil's price hit a three-year high as the global energy shortage continues
One valuation guru has looked into how you can value crypto, NFTs, and other non-traditional assets – Read Now
Norwegian automated warehouse manufacturer AutoStore announced plans to list on the stock market

Dry Spell

What’s Going On Here?

The price of oil hit a three-year high earlier this week, as the tap of dusky earth-juice starts to run dry.

What Does This Mean?

There are a couple of reasons the supply of oil is so low: governments and companies haven’t been investing enough in production, while worldwide demand has been going through the roof. But it all came to a head on Monday when the price of a barrel of oil – which has already risen 50% this year – hit $80. And while the slippery elixir is still cheaper as a fuel than natural gas, that could cause problems of its own: rising gas prices might encourage energy producers to make the switch to oil, pushing demand even higher – so much so that Goldman Sachs reckons its price will hit $90 a barrel by the end of the year.

Why Should I Care?

For markets: OPEC+ might step in.
OPEC+ – the group of major oil-producing countries and their allies – has already been upping production by 400,000 barrels a day in an effort to boost supply. But since that doesn’t seem to have been enough to keep prices down either, it’s meeting next week to decide whether to start pumping out even more. BP and Shell can’t be too happy to hear that: a supply surge might put an end to the rally in their stock prices, which have climbed almost 15% in the last month.

The bigger picture: Coal is hot stuff again.
Europe’s electricity producers are taking a different approach: they’re switching from natural gas to coal. Greener energy isn’t an option, after all, since low wind speeds in the region have left them wanting. That doesn’t bode well for Europe meeting its emission goals, nor is it a good look if it wants to pitch a more ambitious climate deal to other world leaders later this year.

You might also like: How oil prices affect the oil companies you invest in.

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Analyst Take

How To Value Any Company, Part Two

What’s Going On Here?

You might’ve heard us talking about Aswath Damodaran last week.

The NYU professor and valuation guru popped by for a chat about how to value any company, no matter how big it is or what sector it’s in.

And in the second part of our event, we handed the mic over to you.

You didn’t disappoint: you asked Aswath how he’d go about valuing non-traditional assets like NFTs and crypto, and whether he thinks their price and value actually match up.

You also wanted to know why investors are paying so much for loss-making companies, and the one step Aswath takes before buying a stock of his own.

And much more besides: it’s all in today’s interview.

Read or listen to the Insight here

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