Hello Traders,
For the commodities, I generally look at price action starting from high time intervals to low.
To follow energy commodities, WTI always comes first for me.
My analysis about commodities is not only technical but also fundamental.
After the lockdowns Oil demand indeed accelerated and that directly affected Oil price.
In the mean time US used its national reserves to set the price in a level but that wasn't really successful.
Palliative actions does not create stable solutions.
Hard winter for Northern Hemisphere increased the demand of energy commodities.
And other aspect that effects Oil price is politics.
Russia is a major player in the field and as a playmaker role, Russia can directly effect prices.
Europe needs Russian natural gas so bad and Russia is decisive about its pipeline because they don't want to pay commission to Ukraine while sending gas to Europe by North Stream.
That's why they built North Stream 2 which sends Russian gas directly to Europe.
BUT
US does not want Russia send gas through North Stream 2 without Ukraine to be paid. Meanwhile US supported Europe by sending tens of LNS vessels which also increased Henry Hub gas prices.
With all that conflicts,
US wants energy prices lower because of inflation,
Russia wants to send gas through NorthStream 2
Europe need cheap gas
bla bla..
The most important aspect is that, USD is not valuable enough for the world right now comparing to the commodities, metals, energy, housings, for each item that people need to have.
and that means inflation...
Thanks and have a nice weekend.
For the commodities, I generally look at price action starting from high time intervals to low.
To follow energy commodities, WTI always comes first for me.
My analysis about commodities is not only technical but also fundamental.
After the lockdowns Oil demand indeed accelerated and that directly affected Oil price.
In the mean time US used its national reserves to set the price in a level but that wasn't really successful.
Palliative actions does not create stable solutions.
Hard winter for Northern Hemisphere increased the demand of energy commodities.
And other aspect that effects Oil price is politics.
Russia is a major player in the field and as a playmaker role, Russia can directly effect prices.
Europe needs Russian natural gas so bad and Russia is decisive about its pipeline because they don't want to pay commission to Ukraine while sending gas to Europe by North Stream.
That's why they built North Stream 2 which sends Russian gas directly to Europe.
BUT
US does not want Russia send gas through North Stream 2 without Ukraine to be paid. Meanwhile US supported Europe by sending tens of LNS vessels which also increased Henry Hub gas prices.
With all that conflicts,
US wants energy prices lower because of inflation,
Russia wants to send gas through NorthStream 2
Europe need cheap gas
bla bla..
The most important aspect is that, USD is not valuable enough for the world right now comparing to the commodities, metals, energy, housings, for each item that people need to have.
and that means inflation...
Thanks and have a nice weekend.