US Oil Inventories at 5Y Low. BVS Bounces +7.6% as Canaccord Raises Target Price to $3.05
Paper Mandate Market & Portfolio Commentary | 14 July 2026
Fund Status:
Bal Start: $1,142,963
Bought None
Sold: None
Bal End: $1,139,606
Cash: $129,756
Overnight Markets
US Indices closed broadly lower as US/Iran tensions escalated and semiconductors continued to sell-off. Sentiment fell after Trump announced a reinstatement of the naval blockade on Iran. This sent WTI up +9.15% to US$78/bbl. This will help the Energy sector but increases inflation fears.
If we examine the US crude oil inventories, they are currently at a 5-Year low. Despite the US being energy independent, is there a risk that demand will outstrip supply, reducing inventories further.
Australian Market
The ASX as a whole ended the day flat whereas Energy (+1.98%), Utilities (+1.37%) and Materials (+0.67%) rally due to the geopolitical tensions. Interestingly, both Australian Business Confidence and Consumer Sentiment rose to -5 and 83.9 respectively. The latter is surprising considering home buyer sentiment and clearance rates are still at lows.
Portfolio Commentary
The portfolio declined just -0.29% while the ASX 300 ended flat. Our 11.4% cash reserve and somewhat insulated us the commodity sell-off. Woodside jumped +3% alongside the rally in Energy. Bravura bounced back +7.62%, erasing almost all of yesterday’s profit-taking. Conversely, the commodity sell-off hit C79 (-3.09%), PC2 (-3.08%).
In other news, SKS wins $28m worth of data centre work. Morgans downgraded Xero (+0.80%) to Accumulate from Buy with a target price of $85. Meanwhile Bravura’s target price was raised to $3.05 by Canaccord (27% implied gain), and GDG’s (-3.76%) target price was cut to $5.50 by Citi (still an implied 50% gain).
Investment Activity
None
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.