If crude oil rockets go up for many years, what is behind the inflation, will it continue, and how high can it be?
A dramatic increase in the price of crude oil
Market price in less than three days WTI crude oil The barrel has risen sharply by more than 21 percent to reach an eight-year high of more than $ 111. Energy production has been rising for a long time and traded up to $ 62 a barrel three months ago, after doubling. Such dramatic movements in the price of crude oil are not uncommon, but they are Big swing Potential for the global economy. Russia’s invasion of Ukraine is the latest in a string of high-profile shootings over the past few days.
The International Energy Agency (IAEA) has announced that it will release 60 million barrels of crude oil to reduce the flow of crude oil. .
What does this mean for traders?
At the time of writing this article. Crude oil prices have dropped by more than $ 111 a barrel in eight years, with European markets set to open this morning.. However, The reform we are witnessing seems to be a normal development And it’s not a big reversal. All of the above factors remain unchanged.
Commodity prices such as crude oil have been declining sharply for many years The best option for a trader is to expect the trend to continue.. Having said that, the question can be asked legally, how much can it cost? There is no easy answer, but economists agree When the price reaches $ 120, it will start to cause serious problems for the economyAs crude oil is still the most important energy. There is also the question. The effect of high energy prices on already high inflation. These factors suggest that Western nations are working hard to reduce prices. However, given the high level of tension with Russia, their weapons may be too limited to do so.
The market may have some memory of the past key points. The WTI crude oil price chart below indicates a technical resistance of $ 112.31 and $ 115.00.