Strong global oil demand and OPEC/Russia cuts are draining inventories and supporting crude prices.
Sanctions against Iran and/or Venezuela could also help send oil to more than $80/per barrel – a 17% increase from the current $68.
Reckoning a short or mid-term position in oil with a pro-environment stance isn’t difficult.
As oil prices rise, alternatives only become more attractive.
Weekly Update through April 27, 2018 The S&P 500 was flat, even as the Dow Jones lost -62bps, the Russell 2000 was down -49bps and the Nasdaq declined -3bps.
As for US bonds, they gained 1bps.
Globally, the MSCI World Index declined -11bps and the Barclays Global Aggregate Bond Index lost -72bps.
The Euro Stoxx 50 added 1.50% in local-currency (Euro) and declined -48bps in USD. Meanwhile, the Topix gained 1.49% in local-currency (Yen) and 2bps in USD.
