Chevron Grinds Out a Higher Low as Energy Starts to Move
Crude oil is pushing back to its highest levels since September's drone attacks in Saudi Arabia. Energy stocks are following. The sector's the worst performer by far on a year-to-date basis. But in the last two weeks, the
XLE
is leading all the other major SPDR tracking funds.
CVX
is the second-biggest company in XLE behind
XOM
. Just as its bigger peer has been holding support at $67, CVX has been grinding out a higher low at $116. (See related XOM idea.)
The chart doesn't yet show a clear trend forming. However, the wider backdrop of oil trying to bottom creates a potentially interesting risk/reward to the upside if traders use $116 for risk-management.
Recapping the energy space, OPEC deepened its oil-production cuts by 500,000 barrels per day last week. Two days ago, the cartel forecast a crude deficit for 2020. Drilling in the U.S. has also dropped to its lowest levels in 2-1/2 years. Furthermore, two major geopolitical risks are fading: China and the U.S. have a trade deal and Boris Johnson's victory in the U.K. provides clarity about the direction of Brexit.
XLE
is leading all the other major SPDR tracking funds.
CVX
is the second-biggest company in XLE behind
XOM
. Just as its bigger peer has been holding support at $67, CVX has been grinding out a higher low at $116. (See related XOM idea.) The chart doesn't yet show a clear trend forming. However, the wider backdrop of oil trying to bottom creates a potentially interesting risk/reward to the upside if traders use $116 for risk-management.
Recapping the energy space, OPEC deepened its oil-production cuts by 500,000 barrels per day last week. Two days ago, the cartel forecast a crude deficit for 2020. Drilling in the U.S. has also dropped to its lowest levels in 2-1/2 years. Furthermore, two major geopolitical risks are fading: China and the U.S. have a trade deal and Boris Johnson's victory in the U.K. provides clarity about the direction of Brexit.
