OPEC – minus 1
Published Date: 2020-03-19 | Source: INCE|Community | Author: Andrew Kinsey
Sasol is under considerable pressure, with massive loss of value for shareholders. Ingham Analytics issues a timely Macro Insight on the oil market. The note is titled "OPEC - minus 1". This follows on from "In the darkness of tumult a possible chink of light" published 17 March and "What a gas" dated 5 March and we suggest that all three notes be read for a holistic picture at this roiling time in markets.
In his first contribution, Andrew Kinsey, widely regarded as one of the top traders in financial markets, observes that all energy stocks, including Sasol on the JSE, have been under immense downward pressure with little sign of that abating. Brent Crude is now below $30/bbl having started the year at $66/bbl. Whilst this low for the year coincides with the Saudi-Russia fallout over oil production and pricing, oil had in any event been slipping. But is this as low as it goes? Where to from here? And how do you trade this to take advantage?