Gold Market Wire
News, analysis and commentary for gold traders and investors
Crude Oil Market
Crude Oil Skips along Resistance
January 14, 2022 - (Gold Market Wire) - Crude Oil continues to stay strong as it rises along the resistance line in what looks like preparation for its next breakout.
So far, its looking like yesterday was yet another short-lived pullback, on the road to higher prices. Sitting comfortably above the October 25 intra-day high of $84.50, it's tough to be anything but bullish in this market that looks ready to run and run. And why wouldn't it? The Crude Oil industry is now so starved of investment, so hated by all politicians, it's becoming as rare as diamonds. When you don't explore, don't produce and have your shipping, piping and distribution networks shut down, what else is going to happen?
Adding in our trend line:
It's getting to the point where people without price exposure to Crude Oil are going to have more and more trouble financing energy consumption over the long-term...and by that we mean the next 1 to 10 years. That's how strong this market is getting to be. Witness the UK presently, where energy bills are soaring some 50% in the home heating world, year on year. That is now. What happens when we're 50% higher? Then home energy bills will double again, and there will be a real crisis in people's homes. When we start flirting with $125, will people demand that green policies be scrapped and government, then, scramble to secure supplies. Well, that wouldn't be out of character.
It is said that the cure for higher prices is higher prices. But what if this time the 'cure' is off the table, because Greta said its better for 'the planet' to freeze in the dark? Well, one can suppose that the cure may be a greatly reduced human presence on earth. Perhaps then oil will become cheaper.