23.10.25 - Oil back in focus

Oil returned to the spotlight after President Trump announced fresh sanctions on major Russian oil companies. The move aims to restrict Russian crude sales to India — a key buyer — in an effort to cut financial support for Moscow’s war efforts.

Markets: Oil and energy stocks gain

• WTI Crude oil: surged more than 5%, jumping from USD 58 to over USD 61/barrel

• Energy stocks sector: rally, trading nearly 2% higher in early market actionhe broader oil market remains in a phase of oversupply.

My View: The broader oil market remains in a phase of oversupply with US producers heavily drilling and with the OPEC+ decision to increase production in a period of world economy rather slowing.
However, such geopolitical shocks can trigger sharp short-term moves, especially as investors are currently rather positioned short. A wave of short-covering could now fuel some gains in the near term.

Following last night’s announcement, I added exposure to the oil market in after-hours trading and plan to include a few select energy names with short-term upside potential due to undervaluation.

Disclosure ETFMandate portfolio: long position in Crude Oil and energy sector ETF

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