Oil WTI broke down out of the wedge and it now looks like what used to be support has now flipped to resistance in the short-term.
With the on-going war, I don't see oil dropping below 90 but would not be surprised to see it drop $3-5 more in the upcoming days.
The coordinated SPR will also put a lid on and prevent any further large spikes in oil for at least the next several months imo. Oil between $90-100 is highly favorable for oil equities as they continue to pay down debt and force credit re-ratings via buybacks throughout the year.
I believe there is still good value to be had in some of the mid to small cap U.S. shale producers (CDEV/CPE/LPI and others).
With the on-going war, I don't see oil dropping below 90 but would not be surprised to see it drop $3-5 more in the upcoming days.
The coordinated SPR will also put a lid on and prevent any further large spikes in oil for at least the next several months imo. Oil between $90-100 is highly favorable for oil equities as they continue to pay down debt and force credit re-ratings via buybacks throughout the year.
I believe there is still good value to be had in some of the mid to small cap U.S. shale producers (CDEV/CPE/LPI and others).