The surprise production cut announcement from OPEC+ on Sunday caught us off guard!
With oil prices surging close to 7%, the question arises: will this trend persist?
To put the production cut into perspective, the unexpected 1.16 million barrels per day reduction is a continuation of the cuts announced last October. In total, these cuts will represent roughly...
OPEC cuts down production and economies worldwide are re-opening... although there is a bearish divergence on the RSI would not risk taking a position here. Also we see that when the market falls the try to rise oil prices so that petroleum companies do not crash and act as a buffer to the market downturn
I think there is a fair chance that oil breaks out, maybe due to fears of war in the Middle East? Maybe due to OPEC extending production cuts, or maybe a bit of both, paired with Trump's comments of wanting a weaker dollar. I think energy positions are a good hold, and even a good chance to add to many, like $OXY, $PBR, $MPC, $PBF, to name a few.
Keep an eye out...
