- US cut its target interest rate by 75 bps to 0.25% historical low, after that, US government need to use other method to boost the economy. However, mortgage rate in US did not fall.
- US new weekly jobless claims fall to 554k (better than expect, 575k)
- US Dec Philadelphia Fed index -32.9 (better, -40)
- OPEC agreed to cut oil supply by 2.2M barrels per day, but oil price has dropped below $34.
- China cut interest rate by 27 bps to 2.25% (deposit rate) and 5.31% (mortgage rate)
I think oil price should start rebound, but given that the cost of oil production is fixed, so unless it rebound above US50/bbl in short period of time, oil stock's rebound will not be huge. (Technical speaking, the rebound has already completed).
But it is time to consider buying oil companies for long term.
Out of all oil companies, buy those with and with larger refinery business will be much safer.
No comments:
Post a Comment