Eric Nuttall Warns of Historic Oil Crisis and Imminent Demand Rationing
As the Strait of Hormuz closure chokes global supply, top fund manager Eric Nuttall predicts US$150 crude and reveals the top North American energy stocks poised to surge.
Forget the pandemic lockdowns; your next stay-at-home order might just be brought to you by an empty gas tank. According to Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, the global economy is careening toward an energy crisis of historical proportions. With global supply chains choking and geopolitical tensions boiling over, Nuttall warns that mandatory demand rationing could become a reality within mere weeks, forcing governments to adopt aggressive work-from-home mandates simply to keep the lights on and the engines off.
The catalyst for this looming nightmare is the effective closure of the Strait of Hormuz following the outbreak of war on February 28. Historically handling roughly a fifth of the world’s oil supply, this critical maritime chokepoint has completely choked off international markets. Nuttall points out that the globe has already hemorrhaged an estimated 650 million barrels of oil. Even if peace were declared and the waterway reopened tomorrow, the market would still stare down the barrel of a 1.5 million barrel-per-day deficit. The final tankers that were already in transit when the conflict began have unloaded in Asia and Europe, leaving zero replacement barrels floating in the Persian Gulf.
To force consumers to stop burning fuel we simply do not have, prices will have to do the heavy lifting. Nuttall forecasts that crude may need to violently spike to US$150 a barrel just to curb consumption. The sheer panic is already showing up in the data, with diesel stocks plunging four percent and gasoline inventories dropping three percent in a single week. Global oil inventories are on a crash course for all-time historic lows by the end of May, a reality the broader market has yet to fully digest due to sheer apathy.
Fortunately for his investors, Nuttall saw the writing on the wall long before the rest of the street. Concluding that the mainstream narrative of a supply glut was entirely misplaced, his fund transitioned to a 100 percent oil-weighted portfolio back in January. As nations like India realize they can no longer rely on the Middle East for energy security, a massive premium is being placed on reliable North American barrels. Nuttall’s fund is heavily positioned to capture this shift, holding a mix of seven Canadian and four American energy names.
Leading the charge in his Canadian lineup are heavyweights Suncor Energy Inc. (TSX: SU) and Cenovus Energy Inc. (TSX: CVE). Nuttall notes that both of these oil sands giants use a highly conservative US$80 oil benchmark for their corporate planning. Even without factoring in triple-digit crude prices, these companies trade at a highly attractive six times cash flow and boast 12 percent forward free cash flow yields.
The portfolio also heavily features Strathcona Resources Ltd. (TSX: SCR), a company Nuttall highlights for its aggressive growth profile. Strathcona is currently on track to boost its production by an impressive 45 percent over the next four years. In doing so, it expects to generate enough excess cash to shower investors with roughly nine percent in annual special dividends, all while maintaining the capacity to sustain that production for half a century. Rounding out his top picks is Athabasca Oil Corp. (TSX: ATH), a staggering turnaround story that has rocketed from a mere 18 cents to $12. Nuttall remains fiercely bullish on the company, projecting it to ultimately reach $20 a share as the global market aggressively pivots its focus toward the absolute security of supply.
Source Material Match:
The information in this article is derived directly from the provided report: "The world is weeks away from oil rationing as prices rise: Eric Nuttall" by Anam Khan, published May 01, 2026. The source details Nuttall's warnings of the largest energy crisis in modern history, driven by the Strait of Hormuz closure since February 28. It outlines his predictions of near-term demand rationing, crude potentially reaching US$150/bbl, the exhaustion of in-transit cargoes resulting in a 1.5M bpd deficit, and global inventories hitting all-time lows by May. Furthermore, it details Ninepoint Partners' 100% oil-weighted portfolio strategy and specific bullish stances on Suncor Energy Inc., Cenovus Energy Inc., Strathcona Resources Ltd., and Athabasca Oil Corp. due to rising international demand for secure Canadian energy.