As documented in hundreds of articles in the business media over the decades: an increase in oil prices affects almost all businesses since it costs more to transport ...
Oil and how much it costs is the problem.
The price had been headed down but now it’s headed back up. As documented in thousands of articles in the business media over the decades: an increase in oil prices affects almost all businesses since it costs more to transport goods and to just drive down the road (for most drivers).
The general “expectations” consensus is that since oil had dropped lower this year then that’s the sort of trend that economists can depend on to continue. Unfortunately, the price charts strongly suggest otherwise. A close look at the key market indicators for the commodity may be returning to the dreaded upward-ness of trend.
Inflation, Oil Prices, Interest Rates.
United States Oil Fund daily price chart, 8 3 23.
STOCKCHARTS.COM
This widely followed fund typically reflects the movement of West Texas Intermediate Crude and has taken out the April high. You can see how the 50-day moving average (the blue line) has turned back upward and now appears to moving in the direction of the 200-day moving average (the red line). That’s a bullish look.
United States Oil weekly price chart, 8 3 23.
STOCKCHARTS.COM
MORE FOR YOU
It’s probably significant that the benchmark oil fund has this week closed above its 50-week moving average for 3 weeks in a row. Note how the price dipped below the 200-week moving average briefly in March but seems to have reversed, staying above it for months now.
United States Gasoline Fund weekly price chart, 8 3 23.
STOCKCHARTS.COM
Source : [Inflation Could Get Worse Than Expected. Here’s Why.](www.forbes.com/sites/johnnavin/2023/08/03/inflation-could-get-worse-than-expected-heres-why/) by John Navin, Contributor - Forbes - Investing by John Navin, Contributor / August 04, 2023
