The Energy Sector fell -2% on Thursday as the oil price slipped back towards $US84, even while a resolution in the Middle East appears a long way off. Woodside (WDS) has already slipped ~13% from the swing high posted after Hamas invaded Israel. For now, we are happy sitting on the sidelines, but we will be on the lookout for a pickup in strength, ideally around $30 or 10% lower. However, with the ongoing geopolitical tensions, this is likely to remain a volatile, choppy move whichever direction prevails.
- We remain bullish toward oil medium term, but over the coming months, we can see it back below $US80, which is likely to see further weakness across the energy names.
MM will reconsider WDS around the $30 area
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