The European Union’s energy crisis isn’t improving after they approved new sanctions against Russia, which include a price cap on the maritime trade of Russian oil.  To make matters worse, OPEC+ agreed to cut production by 2 million barrels a day starting in November, hoping to keep the oil cost over $90/barrel.  We will see if they come close to that amount since they’ve already been struggling to meet previous production targets.  

It may not be an issue if a looming global recession cripples demand.  However, as China’s Zero-Covid approach changes and more of the country is open for extended periods of time, we could see their demand for oil climb, which would create a spike in oil prices.    

Energy is now the only sector that remains positive year-to-date, so let’s take a look at one company that is in the energy sector and could profit from an increase in oil prices.