OILK: Changing To A Bullish Stance (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• I have been mildly bearish on oil prices since January 2023 and that view has played out in the markets. But now some important developments have changed my stance.
• OPEC+'s 1.65 million barrels per day surprise production cut is bullish for oil prices.
• Expansion in China's PMIs, especially in the leading indicators of new orders and export orders bodes well for a better demand environment.
• Technical analysis also suggests an incrementally positive outlook.
• I believe it is still important to be cautiously bullish as the Fed can come back with more aggressive rate hikes to combat the elevated inflation risks that follow from these events.

Read the full article here.