Are Oil Prices About To Crash?
Technical traders do not look at prices the way that most investors do. Earnings, sales, supply, and demand are not part of their decision-making. They look at charts and price ranges. Sometimes, their analysis looks back decades. Some oil technical traders believe the price of oil will collapse this year.
*Oil Price Information
*What Happens When Oil Prices Rise?
*High Oil Prices And The Collapse Of Emerging Markets
The broad tech analysis of crude oil shows that it has dropped from $100 two and a half years ago to $70 recently. For the last year, the price has been “range bound.” It has been “boxed” from $68 to $82 for about a year.
The technical trader argument is that if crude drops below $68, an important price floor will collapse. Without any major outside influence, such as a tightening in supply from the Middle East due to a war among the region’s countries, oil prices will drop to $60. The lowest crude in the last three years was $65 in November 2021.
Crude Prices At $60
Crude prices at $60 would be good for the US economy and bad for the environment. An average gallon of regular nationwide would probably drop below $2. Jet fuel prices could fall by a third from current levels, and home heating oil prices would drop about the same.
But, the heavy use of inexpensive crude oil would damage the environment. The argument that gas-powered cars are expensive to run compared to EVs would become weaker. The rotation to renewable energy from oil might slow.
If technical traders in crude are correct, the cost of living in the US could move down quickly.
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