U.S. crude oil futures fell more than 4% on Sunday, after OPEC agreed to surge production for a second month. Oil prices in April posted the biggest monthly loss since 2021, as U.S. tariffs have raised fears of a recession that will slow demand at the same time that OPEC is quickly increasing supply.
Crude Oil below 60 starts to look attractive. The futures curve points to higher prices ahead despite the OPEC action. What is even more attractive is the energy stocks. They have been underperforming the overall stock market and becoming cheap by many valuation metrics. We believe this is a buying opportunity.
