OPEC Projects Strong Oil Supply and Portends Potential Glut
Even as crude prices rally, the Organization of the Petroleum Exporting Countries (OPEC) Secretary-General thinks that the oil market is adequately supplied.
Following U.S. sanctions on Iran, market investors seem to be pricing in expectations of a supply shortage (Iran being the OPEC's third-largest oil producer). Last week, Brent crude (LCOc1) touched $86.74, the highest since 2014. However, OPEC Secretary-General Mohammad Barkindo indicated, at the Oil & Money conference in London, that oil price upswings are more a result of speculation on supply shortage versus actual fundamentals.
"The market has been reacting to perceptions of a possible supply shortage. The market remains well supplied," he said. "The projections for 2019 clearly show a possible rebuild of stocks," speaking on his outlook for next year.
What’s more, OPEC in a separate analysis projected dampened growth in oil demand for oil in 2019 due to trade wars and emerging markets’ crises/volatility. OPEC now expects oil consumption next year to rise by 1.36 million barrels per day(bpd), 50,000 bpd lower than its last estimate.
OPEC lowered estimates for 2019 demand for its own crude to 31.8 million bpd citing weaker demand and rising supplies outside the group. OPEC's report also said that if it continues to produce at its September rate of 32.76 million bpd (the highest this year so far), it might incur a glut of almost 1 million bpd in 2019 - although this excludes the impact of any substantial reduction in Iranian output.
Barkindo is, however, concerned about spare capacity levels amidst declining investments in the oil industry. Saudi Arabia is reportedly the only OPEC member with substantial spare capacity to leverage - in case demand outstrips supply.
OLO's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for OLO turned positive on July 02, 2025. Looking at past instances where OLO's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 30, 2025. You may want to consider a long position or call options on OLO as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where OLO advanced for three days, in of 244 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
OLO broke above its upper Bollinger Band on July 03, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for OLO entered a downward trend on July 02, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. OLO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.335) is normal, around the industry mean (31.579). P/E Ratio (9.872) is within average values for comparable stocks, (164.144). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.732). Dividend Yield (0.023) settles around the average of (0.030) among similar stocks. P/S Ratio (3.834) is also within normal values, averaging (62.141).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. OLO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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