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Oil's Well That Ends Well 😌
Did you know that the price of oil can influence the entire economic landscape, affecting everything from the cost of transport to the valuation of currencies?
Oil's Well That Ends Well 😌
Did you know that the price of oil can influence the entire economic landscape, affecting everything from the cost of transport to the valuation of currencies?
With this in mind, the impact of OPEC’s decisions should not be ignored.
This edition of Equity Eats highlights three pivotal trends:
The Oil Countries Are Losing Market Share, And That’s A Good Thing: First, as OPEC+ cuts production, non-OPEC+ producers like the U.S. find opportunities to thrive, marking a significant shift in global oil dynamics 🛢️
UPS Didn’t Deliver But The Future Looks Brighter: Second, despite recent challenges, UPS's focus on efficiency and automation promises a resurgence, offering investors an attractive dividend yield in the meantime ✨
Nvidia Stock Is Rising Again: Finally, Nvidia stands out with its stock climbing ahead of its AI conference, spotlighting AI's role in tech advancements and sparking debate on the market's next direction 🖥️
Dive in for a concise overview of these key developments, guiding you towards informed investment choices in today's fast-evolving financial landscape.
The Oil Countries Are Losing Market Share, And That’s A Good Thing 🛢️
OPEC and its allies, altogether known as OPEC+, have shrunk their market share of global oil production to the lowest level ever as they hold back production to prop up prices.
It’s a good sign for producers outside the alliance, including the U.S. majors 🤑
With OPEC making sure the market doesn’t get oversupplied, non-OPEC+ members have a free pass to drill more and reap the rewards.
With the latest production cut decisions by OPEC+, their market share for oil production will decline to 33.9% in June.
That’s down from 41.4% in April 2020 when OPEC was in the midst of a market-share war 📉
UPS Didn’t Deliver But The Future Looks Brighter ✨
UPS stock looks attractive after a selloff as the package-delivery leader works to cut costs and boost profits.
Investors can reap a 4.4% dividend yield while waiting for the rebound 💵
The leading package-delivery service company is seeking to cut costs, increase automation, boost margins, and lift volumes to offset higher expenses from a costly contract with the Teamsters union last summer.
The company is a dominant player in package delivery and a vital piece of the economy, with plenty of opportunities to cut costs and boost margins.
If management were ever open to a sale, Berkshire Hathaway likely would be interested.
Warren Buffett has long sought what he calls an elephant-size acquisition—and UPS is a big, high-quality, U.S.-oriented company that could fit that bill 📝
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Nvidia Stock Is Rising Again 🖥️
Investors may already be looking ahead to Nvidia’s AI conference, which begins today, March 18, as the next potential catalyst for the shares.
Nvidia shares have risen 74% this year to date.
That compares with a 7.0% increase in the S&P 500 Index and a 6.2% rise in the Nasdaq Composite over the same period 📈
Given the role that AI has played in driving the tech sector’s recent gains, the question is:
Will this even serve as meaningful catalysts for the next move higher? 👀
Or will it bring in profit taking as investors think the rally is overdone from a short-term perspective? 🤔