2022/09/08 (065) Technical Analysis

The Fight Of The Oil Bulls/Bears For The 100 USD Continues, This Week
– Whether Green Taxes, Black Inflation, And/Or Geopolitics? Everything Matters!
We`ll Try Again A Short 4XSetUps Trading Capability in UKOIL This Week

Greedy Black And/Or Green Price Action Drivers – Oil Companies And/Or Green Tax Collectors

Again and again we experience, I experience, as last weekend, that our fuels, both diesel and petrol, are currently rising to astronomical heights due to the risein crude oil prices. I still remember when I got my driving license for the first time, just over 10 years ago, in 2009. Also in the spring of 2011, when I, together with political green activists, made sure that there was a green prime minister for the first time, in my home state Baden-Würtenberg,here in my homeland Germany. And currently (in the meantime politically unfortunately) still exists. At that time, the price of oil was also well over USD 100 and diesel at the gas station cost a maximum of EUR 1.20 per liter. Always oscillated around EUR 1.10 – at the low even just EUR 1.00. And what happened to me on Saturday night!? The double?! I paid 2.24 EUR! With almost the same oil price on the market! And then it is said that the market, the private sector, is to blame? But is that true!? Without wanting to abolish the market and the state?!

As a learned student of Milton Friedman,
I would like to add 3 quotes to my commentary today on the current oil price: At first Inflation is always and everywhere a monetary phenomenon.” And or also 2nd “Inflation is caused by too much money chasing after too few goods.” Which is basically true. And add a third crucial 3rd quote: “Inflation is a tax that does not need to be passed by Parliament. The government’s solution to a problem is usually just as bad as the problem.” And also throw a few words about the facts I experienced on the table of political arguments. At that time, the oil price costs more or less, on the market, the same! And today, as a consumer, as a taxpayer – who is not just me, who we all are, in every single country in the world – I pay twice as much at the gas station! Why? Right, political decisions! But which?

Personally, I lack the political intelligence to competently think the price determination through to the end at the gas station.
I hope there is a reader who can do better. And I publish his findings – with or without reference to the source (depending on your wishes).
Because we taxpayers and consumers are once again being kept from the actual truth, namely that questionable market mechanisms (financed with taxpayers’ money) that are consciously controlled by the large (black oil) corporations and tolerated by green politics are responsible for the price explosion. So most of in crude oil prices. I still remember when I got my driving license for the first time, just over 10 years ago, in 2009. Also in the spring of 2011, when I, together with political green activists, made sure that there was a green prime minister for the first time, in my home state Baden-Würtenberg,here in my homeland Germany. And currently (in the meantime politically unfortunately) still exists. At that time, the price of oil was also well over USD 100 and diesel at the gas station cost a maximum of EUR 1.20 per liter. Always oscillated around EUR 1.10 – at the low even just EUR 1.00. And what happened to me on Saturday night!? The double?! I paid 2.24 EUR! With almost the same oil price on the market! And then it is said that the market, the private sector, is to blame? But is that true!? Without wanting to abolish the market and the state?!

As a learned student of Milton Friedman,
I would like to add 3 quotes to my commentary today on the current oil price: At first Inflation is always and everywhere a monetary phenomenon.” And or also 2nd “Inflation is caused by too much money chasing after too few goods.” Which is basically true. And add a third crucial 3rd quote: “Inflation is a tax that does not need to be passed by Parliament. The government’s solution to a problem is usually just as bad as the problem.” And also throw a few words about the facts I experienced on the table of political thanks to us consumers and taxpayers, in our so-called West, due to political decisions. Saudi Aramco is meanwhile the world’s largest oil producer. Officially known as Saudi Arabian Oil Company, the company is primarily state-owned and is based in Dhahran, Saudi Arabia. And it is the world’s most profitable company, eclipsing even tech giants such as Apple (AAPL) and Alphabet’s Google (GOOGL). The world got a sneak peek of this long-secretive company’s financial snapshot after credit rating agencies released financial details about Saudi Aramco in April 2019 just before its debut international bond sale, which raised $12 billion. Saudi Aramco began attracting increased investor attention in 2016 when Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al-Saud announced plans to list 5% at a valuation of approximately $2 trillion in what became the largest initial public offering (IPO). Our Arabs declassify the US economically, under the clock of Sleepy Joe. Our Arabs declassify the US economically, under the clock of Sleepy Joe. And his us democrats policy, under the cloack of a liberal democracy! And that double – in both ways, my readers, all around the world! As capitalists; and or rather as Statesmen! Think about it? Even if, in our so-called West, nobody write about it publicly hardly.

“It follows from these theses that inflation is always and everywhere a monetary problem in the sense that it comes about and can come about exclusively through a faster expansion of the money supply compared to production.” With this quote, Milton Friedman countered a variety of arguments that said inflation was a result of cost pressures or increases in wages or the price of oil. Instead, inflation is always an effect of an excessive expansion of the money supply. But that is only partly true! It’s not just expanding the money supply! Rather, it is even more crucial the level of the key interest rate! Because cheap money – and if that goes to every incompetent private individual and/or rather politician – always leads to so-called inflation phenomens; much more so-called moral hazard, sooner or later, more or less! Just like in 2008, in the case of Lehmann Brothers, what may be most of my readers saw live back then!?

Oil Edges Higher From Over 7-Month Low

WTI crude futures edged higher to $83 per barrel on Thursday, rebounding slightly after tumbling almost 6% in the previous session as investors weighed on supply concerns against signs of a persistently sharper economic slowdown. President Vladimir Putin said Russia would immediately stop oil supply to countries that support the G7’s initiative to cap prices on oil exports or the EU’s plan to place a ceiling on Russian natural gas sales. Still, crude prices remain close to the 8-month low of $83.5 hit earlier in the session as aggressive monetary tightening and Covid lockdowns in China further weighed on demand. The ECB hiked its key rates by a historic 75bps in its September meeting, while Fed President Powell re-emphasized the US central bank’s priority of bringing inflation down through high borrowing costs. In China, disappointing trade data and renewed Covid lockdowns in major cities threatened economic damages.

Dollar Approaches 110

The dollar approached 110 on Thursday, as Fed Chair reiterated during his speech at the Cato Institute that the central bank is strongly committed to bring inflation down, and that longer inflation remains above target which poses a great risk. Markets are currently betting on another 75bps rate hike when the Fed meets later in the month. At the same time, the US economy is seen in a better shape to handle a recession than other major economies. The dollar strengthened mostly against Euro as investors get more increasingly concerned about the outlook in the Euro Area, even after the ECB delivered a historic 75bps rate hike in its September 2022 meeting.

US Crude Stocks Rise More The Most Since April: EIA

US crude oil inventories jumped 8.844 million barrels in the week ended September 2nd, the most since April and compared to market expectations of a 0.25-million-barrel decrease. Also, gasoline stocks went up by 0.333 million barrels, versus forecast for a 1.667 million draw. Meanwhile, crude stocks at Cushing, Oklahoma, decreased by 0.501 million barrels and distillate stockpiles, which include diesel and heating oil, rose by 0.095 million barrels, less than expectations of a 0.53 million injection.