Oil climbs more than $4 on a terrible tape

Trading in the first half of the year was the sale of shares and the purchase of oil. This also becomes the fourth quarter business. WTI crude is up 5% today and briefly touched $93.00, the highest price since August 30. The day also sees a strong US dollar and a brutal drop in stocks. Energy could be a big deal for the global economy next year. Some are talking about the possibility of new inflation if oil and gas are renewed. I don’t think that’s a big risk. Oil and gas alone will not raise inflation in a soft economy. While commodity strength extends to metals and soft materials, it does not compensate for weakness in housing and industries, for example. Anyway, what’s next for the oil business? This was reversed by a fundamental surprise OPEC cuts quotas by 2 million barrels per day and actual production by about 1 mbpd. Furthermore, the move will set the stage for oil prices and send a signal that they mean business. Until last week, the business was demand destruction, but risks are increasing due to destruction of supply from Russia and increased demand from the reopening of China. Additionally, SPR runs out of publications. Technically, look at the weekly chart.

Michael Cooper

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