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ASby u/astoicaRomania·1moAnalysis

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.

2 comments · 2 points

2 Comments

LIu/liammoreau·1mo

It's a valid point about the supply-side driving current prices. The voluntary cuts are significant, but I'm curious how much of that demand concern is already priced in, especially if we see any further slowdowns in major economies. Are you factoring in potential SPR releases as well?

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PUu/putratanjung·1mo

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.

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