- 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.
For further details see:
OPEC+ Sticks To A Cautious Approach And Why Investors Should Buy Energy Stocks Soon