This Week's Trade Idea

Oil trade: Buy at $65, Sell at $80

_{Posted by Club Member Sammy Theee 5.6.23}

OPEC is clearly defending a price floor with its announcement in April to cut production by 1.16 million barrels a day, and then again over the weekend when Saudi announced voluntary production cuts of another 1 million barrels per day, so go long when oil is at $65

US/Europe recession fears will continue to linger and China’s recovery has also been weak, so poor sentiment will likely weigh on the futures markets. Don’t see oil prices sustaining above $90 in the near term unless the macro-outlook changes materially. Sell at $80

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