“Oil prices should stay firm and improve this year,” Michael said. “This is not only because of reduced supply from OPEC, but we should also see increased demand from the US to replenish their strategic reserve, and general global demand as it has finally become obvious that global economies are growing well and not heading into a recession.
“As a result, this will fuel the share prices of energy stocks such as Woodside (WDS).
“The shares are back near the lower end of their recent trading range.
“However, they are showing signs that they will recover from these low levels.
“After bouncing strongly in December, WDS then spent about a month trading sideways to consolidate the move.
“Several days ago, it broke out of this range on high volumes and has started to trend higher again. “This is therefore a buy signal for Woodside,” Michael said.
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