2022-12-16 • Updated
Bloomberg reported that ‘the S&P 500 Energy Index has outperformed the broader S&P 500 by 21 percentage points so far this year, with the top-performing stock, Devon Energy Corp., gaining a whopping 167%’.
Now, energy stocks have outperformed the broader market for the first time since 2016! Moreover, analysts believe that this trend will continue despite the global shift to renewable energy resources.
“There’s a massive appetite to invest in it because it’s just spewing out cash right now,” said Rafi Tahmazian, whose energy producer-focused fund is up 91.2% year to date.
As usually, opinions are divided. Some experts predict that oil prices may experience a correction. WTI oil (XTI/USD) is expected to drop to $66 per barrel by the end of the first half of 2022 and $65 per barrel by the year-end. Still, Tahmazian claimed energy companies could continue to be profitable with lower oil prices.
However, the OPEC+ alliance has upgraded the global oil demand forecast for the first quarter of 2022. The OPEC members believe that the omicron impact will be mild and short-lived. Indeed, the outlook for more robust demand in combination with the current supply limits can keep oil prices afloat.
XBR/USD is moving inside the ascending channel. The key resistance level lies at $80.00. If crude oil manages to break above this level and close there, then oil has all chances to rally further to the October peak at $85.00. Support levels are at the intersection of the 50-week moving average and the lower trend line at $71.50 and $68.00.
Royal Dutch Shell #RDSB
Linde Plc #LIN
Anglo American Plc #AAL
XTI/USD (WTI oil)
XBR/USD (Brent oil)
XNG/USD (Natural Gas)
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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