Oil prices are pushing higher again.
Last checked, oil was up $1.31 to $77.20 and could push higher on the potential for deeper OPEC+ cuts. In fact, as noted by the Financial Times:
“Saudi Arabia is preparing to prolong oil production cuts into next year as OPEC+ weighs further reductions in response to falling prices and rising anger over the Israel-Hamas war. After prices hit a four-month low of $77 a barrel this week, four people familiar with the Saudi government’s thinking said it was highly likely to extend its 1mn barrel-a-day cut at least until the spring. Further cuts, which could inflame tensions with the US, are under discussion by OPEC+ as it prepares to meet in Vienna on November 26.”
We also have to consider the pullback in oil may be overdone, especially with the conflict still raging in the Middle East. That being said, investors may want to consider jumping into oversold oil names, such as Exxon Mobil (XOM), which now sits at support dating back to late July 2023. Helping, XOM is technically oversold on RSI, MACD, and Williams’ %R.