Big Oil Holds Potentially Big Level Before OPEC Meeting

Energy has lagged all year but it’s flashing some potentially bullish signals recently.

While everyone has focused on China and tariffs, crude oil futures are headed for a bullish outside week. Meanwhile there’s growing talk that OPEC will extend its production cuts at the next meeting December 5-6. Remember the Saudis want to list shares of their Saudi Aramco oil giant next month, and now Reuters says they might seek a higher valuation by driving up crude prices.

While Aramco won’t trade in the U.S., Exxon Mobil does. Another news report today says XOM plans to accelerate asset sales to raise $25 billion. Taking a look at XOM, we find it’s a holding a key long-term support around $67 that goes all the way back to August 2011.

This technical line, combined with the double-dose of potentially good news from OPEC and asset sales, may create an interesting risk/reward for traders wanting to own XOM.