We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oil prices increased considerably (i.e. by about 8%) on Apr 3 as OPEC+ producers agreed a surprise oil output cut on Sunday. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about 1.16 million barrels per day from May. The cut will run until the end of 2023.
The output cut is in addition to the 2 million barrels per day cut announced last October by the oil cartel. Per Reuters, the latest announcement brings the total output reduction to 3.66 million barrels per day (bpd), which roughly equals to 3.7% of the global demand.
The move also came on the back of Russia’s decision to trim oil production by 500,000 barrels per day until the end of 2023, according to the country’s Deputy Prime Minister Alexander Novak. The head of investment firm Pickering Energy Partners expect this oil production cut to boost prices by $10 per barrel, as quoted on Reuters.
Apart from the OPEC+ production cut, the recovery of global oil demand from China reopening is also helping the oil demand and prices. Per CNBC, about 38.5% of global oil demand recovery is likely to come from China.
Oil to Hit $100 Per Barrel Soon?
“OPEC+‘s plan for a further production cut may push oil prices toward the $100 mark again, considering China’s reopening and Russia’s output cuts as a retaliation move against western sanctions,” CMC Markets’ analyst Tina Teng told CNBC. In March, oil prices nosedived to their lowest since December 2021, as the banking rout was thought to be weighing on global economic growth and oil demand.
However, with the backing crisis having been managed efficiently and timely and the OPEC+ continuing output cuts, we can expect a meaningful rally in oil prices in the near term.
Against this backdrop, below-mentioned country ETFs may gain/lose.
Norway is among the top 10 nations famous for oil exports and with its comparatively low population, oil forms the key part of the country’s GDP. Per U.S. Energy Information Administration (EIA), Norway is the largest oil producer and exporter in Western Europe. The oil and gas sector makes up around 22% of Norwegian GDP and 67% of Norwegian exports.
Canada is also among the world’s top 10 oil producers. The oil, gas and mining sector makes up about over a quarter of Canada’s economy. The country is one of the world's largest producers of dry natural gas.
Normally, Turkey’s 90% of the crude requirements are satisfied by imports. Hence, this country’s economy is also under tight spot. In any case, the country’s economy has been suffering from higher inflation and natural calamities.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Country ETFs to Gain/Lose if Oil Hits $100
Oil prices increased considerably (i.e. by about 8%) on Apr 3 as OPEC+ producers agreed a surprise oil output cut on Sunday. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to cut production targets by about 1.16 million barrels per day from May. The cut will run until the end of 2023.
The output cut is in addition to the 2 million barrels per day cut announced last October by the oil cartel. Per Reuters, the latest announcement brings the total output reduction to 3.66 million barrels per day (bpd), which roughly equals to 3.7% of the global demand.
The move also came on the back of Russia’s decision to trim oil production by 500,000 barrels per day until the end of 2023, according to the country’s Deputy Prime Minister Alexander Novak. The head of investment firm Pickering Energy Partners expect this oil production cut to boost prices by $10 per barrel, as quoted on Reuters.
Apart from the OPEC+ production cut, the recovery of global oil demand from China reopening is also helping the oil demand and prices. Per CNBC, about 38.5% of global oil demand recovery is likely to come from China.
Oil to Hit $100 Per Barrel Soon?
“OPEC+‘s plan for a further production cut may push oil prices toward the $100 mark again, considering China’s reopening and Russia’s output cuts as a retaliation move against western sanctions,” CMC Markets’ analyst Tina Teng told CNBC. In March, oil prices nosedived to their lowest since December 2021, as the banking rout was thought to be weighing on global economic growth and oil demand.
However, with the backing crisis having been managed efficiently and timely and the OPEC+ continuing output cuts, we can expect a meaningful rally in oil prices in the near term.
Against this backdrop, below-mentioned country ETFs may gain/lose.
ETFs to Gain
Global X MSCI Norway ETF (NORW - Free Report)
Norway is among the top 10 nations famous for oil exports and with its comparatively low population, oil forms the key part of the country’s GDP. Per U.S. Energy Information Administration (EIA), Norway is the largest oil producer and exporter in Western Europe. The oil and gas sector makes up around 22% of Norwegian GDP and 67% of Norwegian exports.
iShares MSCI Canada ETF (EWC - Free Report)
Canada is also among the world’s top 10 oil producers. The oil, gas and mining sector makes up about over a quarter of Canada’s economy. The country is one of the world's largest producers of dry natural gas.
ETFs to Lose
iShares India 50 ETF (INDY - Free Report)
India is almost entirely dependent on imports to back its oil needs. An oil price rally could thus be a major deterrent to India investing.
iShares MSCI Turkey ETF (TUR - Free Report)
Normally, Turkey’s 90% of the crude requirements are satisfied by imports. Hence, this country’s economy is also under tight spot. In any case, the country’s economy has been suffering from higher inflation and natural calamities.