Still watching the major Oil mean reversion

West Texas Intermediate Crude has broken below an important support line.

A couple more measures need to tick over and then probability of a visit to $75 increases.

Failing to hold $75 then focuses on major support figure of $64 being pondered.

A move to those levels has commensurate reactions in a host of asset and securities prices.

Energy prices are the last holdout of the inflationary surge seen in the past 18 months and their notable weighting in CPI calculations will aide the ‘moderating inflation’ call.

September 7, 2022

by Rob Zdravevski

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