Summary
- OPEC and members along with Russia have decided to extend the 9.7 million barrels production cut deadline by another month until July 2020.
- Recent decision by the oil cartel coupled with the stance of Saudi, Russia, and UAE to bring in additional 1.18 million barrel of production trim until July 2020, is supporting the sentiments of energy enthusiasts, leading to a positive price momentum in ASX-listed oil stocks.
- ASX-listed oil stocks such as OSH and HZN have recovered over 112.0 per cent and 92.0 per cent, respectively from their recent low, capturing the attention of the investing community.
ASX-listed oil stocks are now under a sentiment splash with many energy stocks such as Oil Search Limited (ASX:OSH), Horizon Energy Limited (ASX:HZN) moving in an upsurge.
Energy market now seems to be welcoming the recent decision by OPEC to extend the 9.7 million barrels per day production cut till July 2020, a month extension to the previous deadline of June 2020.
Apart from that, Saudi Arabia along with Russia and UAE are also planning to bring additional cut of 1.18 million barrels per day into the market, and the OPEC cartel has also signalled members, who have not been adherent to the 9.7 7 million barrels per day production cut deal to follow the same now until July 2020.
The ongoing geopolitical event is further supporting the market sentiment that the global oil supply glut would witness some ease, which in turn, is now supporting the oil price, and providing a cushion to ASX-listed oil stocks.
To Know More, Do Read: Oil Market Not Out of The Woods Yet- Says OPEC Secretary General HE Mohammad
ASX-listed Oil Stocks Are Under Sentiment Splash
OSH Resumes Trading on PNG Exchange
The stock of the Company is on a surge from $1.808 (intraday low on 23 March 2020) to the present high of $3.840 (as on 10 June 2020), which marks a price gain of 112.97 per cent. During the trading session on 9 June 2020, the stock witnessed a gap up opening of 3.91 per cent, and the Company notified stakeholders about the recommencement of the stock on the Papua New Guinea Exchange.
On June 2020, the stock was suspended from trading on the PNG exchange over orders from the acting Chairman of the Securities Commission of PNG, citing that the Company had violated the PNG Capital Market Act.
To Know More, Do Read: ASX-listed Oil Stocks Following the Oil Market Lead- OSH, ORG, and WPL
However, OSH informed that it would move forward with the matter to the National Court of PNG to defend its position, and suggested on 9 June 2020 that it has successfully obtained an interim injunction from the National Court of Papua New Guinea, allowing the Company to recommence trading on the PNG exchange.
OSH Daily Chart (Source: Refinitiv Thomson Reuters)
On the daily chart, it could be seen that the stock has breached its horizontal resistance line of $3.101 and is now testing the +1 Standard Deviation of the 20-day simple Bollinger band (as the mean value is a 20-day simple moving average), suggesting that the stock is now attempting a volatility…
Read More: Oil Search Resumes Trading on PNGX, while Horizon Oil Concludes Bribe
