Aramco CEO: Oil Supply Gap Will Deepen in May and June

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Aramco’s announcement that its supply shortfall will deepen in May‑June carries potential to push oil prices higher. For XOM, this could strengthen profit margins. Technically, the MACD is above the signal line, the RSI sits at a mid‑level; however, remaining below the 50‑day moving average may indicate a limited short‑term rally.

The Aramco CEO’s recent remarks indicate that oil supply is expected to tighten in May and June, which could briefly lift crude prices. For producers such as Chevron (CVX), higher prices translate into increased revenue. Technical indicators show that the price is above the 20‑day moving average and the MACD is above its signal line, signaling a short‑term rebound. However, remaining below the 50‑day moving average may present medium‑term resistance. Consequently, a modest short‑term rise is anticipated, though volatility is likely to stay elevated.

Aramco's CEO stated that the oil supply gap is expected to deepen, which could create a positive sentiment in the energy sector. Although BP shares fell 1.36% in the last 24 hours, the RSI at 45.8 remains in neutral territory, and the MACD has started to rise above the signal line. A close above the 20-day SMA provides short-term support. However, trading below the 50-day SMA and a bearish trend warrant caution. A short-term upward move is possible, but further confirmation is needed for a strong signal.