The bullish rally in the oil market! | 21 May 2021

#WTI:

The IEA said that the global oil supply glut that resulted from the pandemic has disappeared, due to a steep drop in supply, aided by the OPEC+ production cuts. OPEC did not change the forecast for the growth of oil demand in the world in 2021 and still expects an increase in demand by 5.95 million b/d per day, according to the organization's monthly report. At the same time, the oil cartel has lowered its forecast for oil production from non-OPEC countries in 2021 by 200 thousand bpd. The worsening of the forecast is mainly due to the drop in production in the USA and Norway.

Trading recommendation: Buy 64.60 and take profit 66.20.

#SP500:

The University of Michigan's Consumer Sentiment Index fell 5.5 points to a reading of 82.8, pulling back from the highest level in roughly a year in April. U.S. consumer sentiment unexpectedly dropped in early May as inflation worries sapped confidence in what had been a rapidly brightening economic outlook. Consumers' assessment of their current situation and their future outlook both soured, while their estimates for inflation shot up to 4.6% for this year and to 3.1% for the next 5 years - the highest in more than a decade for both. This is a negative signal for the stock market. The US Federal Reserve balance sheet renewed the all-time high, which is $7.83 trillion now. This is a positive signal for the US stock market, since historically the assets' growth on the balance sheet to a new maximum was accompanied by an increase in the stock market.

Trading recommendation: range 4140 - 4210.

#3MCompany:

3M is one of the leading American chemical corporations. In the first quarter, the company received a big volume of orders for its products, which will be fulfilled in the second quarter. And it in turn allows it to increase its revenues and net income. The dividend yield on 3M Company shares is 2.98%, which is almost 2 times higher than the yield on long-term US Treasury bonds. It is now more profitable to buy 3M Company shares than government bonds.

Trading recommendation: buy 203.10 and take profit 206.50.