Oil jumps on supply concerns
WTI futures were up more than 2% with both Brent and US crude trading higher again today. Energy analyst Osama Rizvi shares with IGTV’s Angela Barnes his views on how oil investors should be positioning themselves.
(Video Transcript)
Share price of oil on the rise amid OPEC+ hopes
WTI futures jumped more than 2% to nearly a one-month high on supply concerns, and are trading higher again today, both Brent and US crude up about 1%.
Expectations for OPEC+ to further cut outputs and improve demand outlooks continue to lift crude oil prices. Yesterday, I spoke to oil analyst Osama Rizvi about how investors should position themselves for next week. Here's what he had to say.
OR: Trade on a shorter term rather than a longer run right now, because there seems to be an extraordinary amount of uncertainty across the world. You don't know whether there will be a geopolitical flashpoint that will just take oil prices into the triple-digit area, or there would be some news regarding the Chinese economy that would plunge the oil prices back to 1960s or 1970s.
Keep your eyes on China
Traders should keep a keen eye on the second-largest economy in the world, that is China. Continue to follow its indicators. I think they're not looking really good at the moment, plus manufacturing activity in the US and the Euro Zone, because oil is the strategic component that lubricates the factory of the world, and the impact is shown in the manufacturing data, right?
So Eurozone manufacturing data, US manufacturing data, Chinese manufacturing data, demand in Japan, South Korea and things like that. So global economic indicators pertaining to the real economy, not the financial economy, should be keenly observed to track the trajectory of prices in moving forward. Thank you.
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