Watch This Signal To Know If You Should Buy More Energy Exposure

If we use the checklist method in assessing whether to be bullish oil or not in the near term, this is what we would get:

• Copper prices going up signaling the end of the global economy is not anywhere near: ✔️

• USD is falling: ✔️

• Brent prompt month in backwardation: ❌

• April Brent trading month in backwardation: ✔️

For energy investors, there are currently 3 greenlight indicators. The only caveat is that the prompt Brent timespreads remain in contango. This is to be expected as the market is saying to us that Q1 2023 will be an overall build.

But this is the main signal everyone should watch.