US Indices look to fill gap lower; Oil shares set to rally

Summary:

• US indices gapped lower on the open

• Attack in Saudi causes risk-off moves

• Shares of Oil companies called to rise as crude prices soar

The big story that is impacting most impacts at the start of the week is the spike higher in crude prices after a Saudi production facility was hit with drone strikes over the weekend (read more here). US indices began on the back foot, gapping lower on the open as a risk-off mood took control of the markets with S&P500 futures beginning around 25 points, or almost 1%, lower than where it ended on Friday. Since then however the market has stabilised somewhat and the index is now back near the 3000 mark and looking to close the gap back to 3007.

US stocks are looking to recover after beginning lower on the open due to raised geopolitical risks. The gap from 3007 remains unfilled while daily lows of 2982 could be seen as possible support. Price has dipped back below the H1 cloud once more - although it should be pointed out that the last few occasions this has happened the market has bounced. Source: xStation

Given the huge move higher in crude oil prices, it is not too surprising that Oil firms are set to begin brightly on the opening bell with Exxon Mobil and Chevron both called to start around 3% higher. There remains lots of uncertainty and heightened risk as far as the price of Oil is concerned in the near-term with the main focus initially being how long it will take to repair the outages and get the 5.7M bpd lost back online.  

Exxon Mobil

Exxon Mobil ended last week back at its 50 day SMA and is expected to open firmly above this level this afternoon. Source: xStation

Chevron

Chevron shares are also set to benefit from the surging Oil price, with the stock called to begin brightly on the New York open. Source: xStation