Crude Oil has had a tumultuous week. For the second day in a row, West Texas Intermediate was under pressure on Friday, sliding below $69 a barrel, while it was still on track for a nearly 1% increase for the week. These price changes occur as the US encourages OPEC and its allies to raise output in order to cut prices and help the economy recover. Furthermore, the International Energy Agency decreased its prediction for oil consumption for the remainder of the year as Covid cases increased again.
Tocqueville Asset Management portfolio manager John Petrides spoke with CNBC’s “Trading Nation” on his outlook on the energy sector. Last year, the energy sector was put through its paces when the price of oil plummeted from approximately $50 to $15, only to return to north of $70 a year later. The market is really volatile; OPEC is a full wild card, and there’s also the pressure from ESG and the need to reduce carbon footprint.
He favours Chevron in particular, calling it “a beacon of safety” in the turbulent oil market. Matt Maley, Miller Tabak’s chief market strategist, was optimistic on the sector in the same “Trading Nation” interview. Maley points out how energy stocks have outperformed the fundamental commodity, Crude Oil, from a technical standpoint.