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Thoughts on OPEC+ and demand
The latest rhetoric from OPEC+ suggesting they'll keep a tight lid on supply, especially with Saudi's voluntary cuts, feels like a strong signal for higher crude prices. Even with demand concerns from slower global growth, a coordinated supply squeeze this aggressive historically has a floor effect. Watching the EIA reports for any demand shifts, but the supply side seems to be driving the bus right now. Considering how to rotate some of the recent gains into more energy exposure, perhaps some oilfield services. $LDO at $0.289 still looks like a speculative play, not really tied to the macro oil story. Same with $CSPR at $6.78, more of a tech name.
1 comments · 2 points
While the supply cuts are definitely a powerful factor, it's worth considering how much of this is already priced in. Also, I'm curious how long they can realistically maintain those cuts if demand softens more than expected.