Trade Radar | Crude Oil Price on FIRE!
Another Weekly Session with Loui, M+ Online Head of Research.
IEF sounds positive on oil prices. According to Joseph McMonigle, the Secretary General of the International Energy Forum (IEF), oil prices are set to rise in the second half of the year, as supply struggles to meet demand.
Joseph McMonigle added oil demand bounced back to pre-Covid levels quickly, “but supply is having a tougher time in catching up”.
Positive measures from China to boost economic growth. Meanwhile, in another Bloomberg article, the oil price is trading near the 3-month high as China flagged more measures to boost economic growth, providing support for the real estate sector, and aiding the outlook for energy demand just as the global market shows signs of tightening.
Bullish tone from Goldman Sachs. Besides, Daan Struyven, the Head of Oil Research at Goldman Sachs is looking at the oil price to rise to USD86 per barrel at year-end as record-high oil demand and lowered supply will lead to a large market deficit.
According to Goldman Sachs, they are expecting pretty sizable deficits in the second half with deficits of almost 2 million barrels per day in the 3rd quarter as demand reaches an all-time high.
WTI oil price rose above SMA 200 and steadied above USD 78
Brent oil price rallied above USD 82 and SMA 200
High correlation of the energy sector with crude oil prices. Also, we realized that the energy sector will be in tandem with the crude oil price. Having a high correlation could be an opportunity for traders to grab some profits when in view of the rally in crude oil price.
Oracle of Omaha remains still bullish in the oil sector. Moreover, do you still recall that Warren Buffett is always bullish in the energy sector and has been increasing his stake in OXY this year? You can click here to check out more.
ETF and related stocks are moving. Besides, not only the ETF is moving, we noticed some of the companies are having a decent breakout and volumes are gradually increasing; suggesting that the stocks are on the move.
You don’t want to miss out on this journey as we believe the rally could be just starting its engine.
You may trade them via the M+ Global App.
| Stock | Last Price (USD) | Market Cap (USD 'bn) | 1 Month Total Return (%) |
| $NEXTIER OILFIELD SOLUTIONS INC NEX$ | 11.35 | 2.616 | 35.12 |
| $Northern Oil and Gas, Inc. NOG$ | 37.12 | 3.416 | 17.10 |
| $Antero Midstream Partners LP AM$ | 12.03 | 5.77 | 12.01 |
| ETF | Last Price (USD) | 1 Month Total Return (%) |
| $Spdr Select Fund-Energy Select Sector XLE$ | 85.66 | 10.73 |
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
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