WDS rallied +2.2% on Wednesday as crude oil advanced ~3%, taking it within striking distance of fresh 2023 highs, now around 5% higher. While we are still considering taking profit on our WDS position, a test of $40 remains a strong possibility, i.e. we are remaining patient at this stage. Obviously, news from the Middle East will dictate the short-term direction of oil, but the recent announcement that Chinese refiners are reducing exports due to a jump in local demand, we believe, is a very bullish demand-side factor that shouldn’t be underestimated.
- We believe the rally by crude oil is maturing, but a “pop” to fresh COVID highs appears to be a strong possibility – at least 5% higher.
MM is short-term bullish toward WDS
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Woodside Energy Group (WDS) v Crude Oil ($US/barrel)
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Woodside Energy Group (WDS) v Crude Oil ($US/barrel)
