Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Thematic (Sector/Industry)

United states Energy / Thematic (Sector/Industry)

<ul><li>Strait of Hormuz transport flow status still rules the day. As we stated in our Energy Roundup published on March 4, the Strait of Hormuz crude oil product flows and the level of Middle East petroleum infrastructure damage will largely determine medium-term oil prices and that is still most definitely the case today. </li><li>The Strait of Hormuz remains the single most important energy chokepoint on the planet and, as Figure 1 illustrates, the vessel transit count has dropped from ~150 vessels/day (including more than 50 oil and chemicals vessels/day) through most of February to near zero since the Iran war started on February 28. </li><li>Beyond crude oil, the Strait of Hormuz serves as a major export route for goods vital to the world’s economy, including liquified petroleum gas, liquified natural gas, refined oil products, chemicals and fertilizers.</li></ul>

Strait of Hormuz transport flow status still rules the day. As we stated in our Energy Roundup published on March 4, the Strait of Hormuz crude oil product flows and the level of Middle East petroleum infrastructure damage will largely determine medium-term oil prices and that is still most definitely the case today. The Strait of Hormuz remains the single most important energy chokepoint on the planet and, as Figure 1 illustrates, the vessel transit count has dropped from ~150 vessels/day (including more than 50 oil and chemicals vessels/day) through most of February to near zero since the Iran war started on February 28. Beyond crude oil, the Strait of Hormuz serves as a major export route for goods vital to the world’s economy, including liquified petroleum gas, liquified natural gas, refined oil products, chemicals and fertilizers.

Oil Price Direction Will Be Largely Determined by Strait of Hormuz Blockade Duration