NRGO - OPEC+ Sticks To A Cautious Approach And Why Investors Should Buy Energy Stocks Soon

• OPEC+ agreed to increasing production over May and July time frame while leaving April unchanged.
• The April balance weakness with China using Iranian barrels and Europe back in lockdown needed OPEC+ to be disciplined.
• Timespreads continue to consolidate with signs of further consolidation ahead for April.
• Timing-wise, investors should look to increase exposure by mid to late April.
• Most important theme will be the lack of growth in the US colliding with the recovering demand. This mismatch will require OPEC+ to not only eliminate the production cut altogether but also to start using spare capacity.

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