Hi Folks:
When WHO expressed its concern about OMICRON variant it was quickly disregarded as its symptoms were considered mild in spite of its high transmission rate.
Today the story is different. Vaccines are effective only slightly over 20% with 2 doses and around 60% with a boost dose (third dose). That's very low!
Unfortunately that is terrible news for everyone but specially for oil producers as it will affect most likely demand.
Austria has proven that total lockdown has produced a massive plummet in covid transmission cases and that may be the solution that some other countries are willing to implement as the cases in Europe are not going down at all.
Some of the higher vaccinated countries in Europe such as Spain, that it was praised by WHO is now entering again into a red zone with nearly an average of 400+ cases over 100k. Still the lowest in Europe but being the highest vaccinated country in the world, how come the cases are rising even amongst those vaccinated already?
All the above it was just to emphasize that oil volatility is high again and it will remain very uncertain for quite some weeks, probably till the end of the family gathering (Xmas season) and winter.
I do not see many good reasons supporting and oil rally at the moment and we need to remember that before the covid pandemics oil had a much lower yearly average cost than now, so my view remains unchanged at the moment and waiting for oil to continue correcting to low 60's to balance the supply and demand and destroy some of the inflation that is hurting the global economy.
Europe and US are having above 6% inflation, data never seen in the past 30+ years.
Technicals are mixed at the moment so I believe fundamentls will be the main catalysts of oil price action.
STAY SAFE. Cheers
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.
When WHO expressed its concern about OMICRON variant it was quickly disregarded as its symptoms were considered mild in spite of its high transmission rate.
Today the story is different. Vaccines are effective only slightly over 20% with 2 doses and around 60% with a boost dose (third dose). That's very low!
Unfortunately that is terrible news for everyone but specially for oil producers as it will affect most likely demand.
Austria has proven that total lockdown has produced a massive plummet in covid transmission cases and that may be the solution that some other countries are willing to implement as the cases in Europe are not going down at all.
Some of the higher vaccinated countries in Europe such as Spain, that it was praised by WHO is now entering again into a red zone with nearly an average of 400+ cases over 100k. Still the lowest in Europe but being the highest vaccinated country in the world, how come the cases are rising even amongst those vaccinated already?
All the above it was just to emphasize that oil volatility is high again and it will remain very uncertain for quite some weeks, probably till the end of the family gathering (Xmas season) and winter.
I do not see many good reasons supporting and oil rally at the moment and we need to remember that before the covid pandemics oil had a much lower yearly average cost than now, so my view remains unchanged at the moment and waiting for oil to continue correcting to low 60's to balance the supply and demand and destroy some of the inflation that is hurting the global economy.
Europe and US are having above 6% inflation, data never seen in the past 30+ years.
Technicals are mixed at the moment so I believe fundamentls will be the main catalysts of oil price action.
STAY SAFE. Cheers
-------------------------------------------------
Remember, if you liked this idea don't forget to click LIKE and FOLLOW. That will encourage me to continue charting for you.