Big Oil: Riding the Bull or Bracing for the Bear?
The ebb and flow of the oil and gas market is nothing short of a financial drama. Historically, its highs and lows have been emblematic of global economic sentiments. Recently, this sentiment hit a fever pitch.
On June 14th, the market sizzled as oil prices soared to a staggering $123 per barrel. But as with any commodity, the real question lingers: Is this a bullish climb or a prelude to a bearish descent? Dive in as we dissect the dynamics of “Big Oil” and predict its trajectory in the face of evolving global demands and geopolitical tensions.
Following the recent high, large profit taking took place amongst futures traders and large cap stock traders.
More recently futures found major support on the 200-day MA and look to be setting up for another rebound during the last half of summer into fall. With political policies and overseas instability setting the stage for a continued trend into the low 100’s for the foreseeable future.
Natural Gas – is this natural
Natural Gas has also enjoyed excellent pricing through the first half of the year, with a high of $9.65/MMCF on June 8th, following the high, massive profit taking took place amongst futures traders as well as large/small cap oil stock traders.
Major support was found on July 6th at $5.50 on the 200-day MA and has continued up past the 50 MA as of July 21st closing at $7.85/MMCF.
With overseas instability and European energy crisis’ deepening following a massive heatwave through July, expect to see continued surging in prices throughout the remainder of 2022 fall and winter months.
