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The Energy Reversal Begins

ByTim Knight
Published 07/22/2021, 11:41 AM
Updated 07/09/2023, 06:31 AM

The charts speak for themselves.

United States Oil Fund, LP (NYSE:USO):

USO Chart.

Energy Select Sector SPDR® Fund (NYSE:XLE):

XLE Chart.

The multi-decade continuous contract of crude oil helps illustrate why I think we’re heading vastly lower.

Crude Oil Futures Chart.

Latest comments

I'm pretty confident XLE will trade around 58.50 per share and wouldn't be surprised if it hit $60 per share in the next 60-days. I'm not finding solid analysis in this article, nor, do I understand what modeling the writer is using to demonstrate the value spread. Meanwhile, gas will continue increasing in price as the President's "green" agenda will drive thinner margins between supply and demand. That bodes well for producers, sellers, investors.
tim is good , as long as you do the opposite ..
extremely lazy analysis, why bothering analysing supply and demand when we can just highlight a portion of a chart in yellow?
The inflation is probably transitory
A small increase in the money velocity, with the current record money supply, would generate prolonged and sustained inflation. This cannot be undone.
Since I commute 70 miles per day, I hope this means lower prices at the pump!
no, mean high prices at the pump
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