Gold Market Wire
News, analysis and commentary for gold traders and investors
Crude Oil Update
Crude Oil Gaps: 50-Day Moving Average Falls
December 24, 2021 - (Gold Market Wire) - Crude Oil is making a move higher as tensions ratchet up over the Ukraine and the effects of stalled pipeline development and completion start to take effect on the market. Cold weather in Europe, at times reaching seasonal extremes has put stress on the entire energy complex, especially Natural Gas and Electricity. Crude Oil is now following.
The Brent Crude Oil chart - the proper crude for the international market, and not WTI - is showing some serious strength now, and the power uptrend is unfolding.
If we take December 2 and 20, the "higher lows" picture has developed nicely. The vault over the 50-day moving average will help.
No doubt, the rumblings over Ukraine are helping things, but this a Bull market that is developing slowly and methodically. It is auto-centric in nature.
Next year looks to be shaping up as a time for Crude Oil and associated products to have strong upside runs. The energy complex is being deliberately hampered by the Green political movement, which wants fossil fuels phased out. As government is largely incompetent at handling the merest of tasks, let alone taking on large ones, the wholesale revamping of the entire global energy matrix, through reckless legislation and spending, from state entities that are largely insolvent financially, is going to create a disaster of the first order. The upshot of that disaster will be an energy complex happy to sit by and watch their development hampered - while prices run higher into their multiples. If history is anything to go by, when prices get high enogh, nationalization will occur - after which fuel will simply become unaffordable to 95% of the population. Then, the "Green" objective will have been 'accomplished': Everyone will be locked up at home - freezing and starving... except for the political class.