BNO - Saudi Arabia Surprises The Market: Oil And Energy Equities Rip Higher

• Saudi and the rest of OPEC+ surprise the oil market by maintaining production for April. Russia and Kazakhstan are allowed to increase.
• Near term, traders will need to get their desired allocation, so expect prices to be supported here.
• Energy equities, while outperforming the rest of the market by a lot, remain undervalued. Suncor and Baytex, for example, remain below where they were pre-COVID.
• For us, we think oil prices will be more or less rangebound here. Chinese refineries will likely keep playing the waiting game with maintenance season underway.
• So for readers, allocate into energy equities.

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