OPEC+ Sticks to Its Tight Supply Plan, So What Now?

OPEC+ is not adjusting its (perhaps too gradual) uplift in supply, sending the WTI to its highest since 2014 (and for Brent since 2018).

Market Analysis

The surge in oil and gas prices threatens to extend the rise in energy prices in general, and consequently to worsen the levels of inflation observed in the United States and Europe. Thus, central banks are under further pressure to tighten their monetary policies quickly. This galloping inflation also frightens the tech sector, whose cash needs are very important. Regarding natural gas, the onset of winter with colder temperatures could further accelerate the shift in demand from gas to oil.

In short, since energy is the heart of the global economy, if inflationary prices are accelerating further, they could lead to a global state of tachycardia, which would rapidly spread to other sectors and, consequently, threaten the entire economy… it’s not impossible, though, to navigate through such dangerous waters with profits.

Keeping an eye on everything energy-related emerging on the horizon and holding the helm firmly during the storm is what I do when cruising through charts — especially at sea full of black waters.