energy He led the markets for another month.
second best Standard & Poor’s 500 Performance, just behind the consumer estimate, was up 10% in October and added to a 52% increase for the year.
heavy weight industry chevron And exon Both are mentioned Better than expected profits Friday morning thanks to higher oil prices. West Texas Intermediate Crude Moreover It reached its highest level since October 2014 earlier in the week.
The sector rallied again on Monday ahead of this week’s main OPEC+ meeting as the bloc will decide future production plans.
Steve Schiavaroni, portfolio manager at Federated Hermes, said the commodity should continue to rise and take energy trade even further.
“We got a crazy call at the beginning of the year for $90 for WTI and we still think that’s where we’re headed,” Schiavaroni told CNBC.Trade Nation” Friday.
West Texas Intermediate crude started the year below $50 and traded on Monday at $84 a barrel. Earlier last week, it rose to $85.41. These rises are a sharp reversal of the plunge in oil prices last year – one contract, for example, turned negative for the first time in history.
“Over the past seven years, any time oil prices hit $60, the Texans came in, they turned on the tap and set you back $40,” Schiavaroni said. “It’s hard for them to do that. There has been a lack of investment over the past several years, no demand in the last year, regulatory changes with the new management, and now you have active investors who are not incentivizing exploration and production, and all together it means that this offer from Texas It doesn’t just flow into the market.”
As for Thursday’s OPEC+ meeting, Chiavarone does not anticipate a change in strategy that would herald a major upside shift for oil.
“We believe that OPEC will manage a steady move higher in oil prices to refill its coffers after years of very low oil prices. So we believe that this rally to the top continues and we believe that ultimately this is beneficial for the energy sector,” he said.
Craig Johnson, chief market strategist at Piper Sandler, also sees further gains ahead for the group. Technical preparation of . said XLE Energy ETF look constructive.
“If you look at the chart on a five-year basis, you have a huge downtrend reversal, a series of higher highs and higher lows now being made with that particular setup. And in our view, any kind of short,” Johnson said during the same interview.
Johnson is highlighting $62-$64 as the next resistance range – Monday’s ETF traded above $58.
According to Johnson, oil also looks set to continue rising. He sees the possibility of WTI moving past Chiavarone’s target.
“We are in the winter months and it seems to me by looking at the oil chart that we see oil above $90,” Johnson said. “It could be closer to $110 to $115.”
Johnson’s lower end at $110 points to a 31% rise over current crude oil levels.