Crude oil prices have had a strong week since October, and one strategist thinks they are ready to jump even in the coming weeks and months. Brent International Index has risen sharply over the past five days, hitting $ 72.70 by the end of Friday. That is still 6% below the July 1 high of $ 77.16, but represents an 11% increase below August 20.
So where do we go from here? Speaking at CNBC’s Trading Nation on Wednesday, Miller Tabac strategist Matt Malay said an unusual market indicator would support a sharp rise in crude prices in the last three quarters of the year.
As we approach the September / October deadline, Male commented during a panel discussion on how investors can protect themselves from the negative impact on stock markets. One thing I really see now is a group that has already come down a little bit, so it has to protect us [investors] if so [the market] According to Male. But if the market continues to gather, I think it will continue to be good, and that is the energy sector.
“I became a bully against the team at the beginning of last October, and since then, even with the drag we have seen since June, the energy sector has dominated the overall market. It’s been down for the last two months and I think it’s over-sold, so technically, I’d like to start going back.
But I also like to see crude oil on the weekly chart called the “Golden Cross”. The “golden cross” is a phenomenon in which a commodity or short-term moving average moves above the long-term moving average. According to CNCC, the market is seen as an indicator that there is more room for growth.
Malay believes this is especially true in the case of crude oil. He referred only three times since the beginning of this century, and each three times thereafter followed a very strong procession in crude oil. 20 to 50 percent anywhere. ”
Considering other factors currently affecting salt prices – including the expansion of the Covenant Delta variant and efforts by the United States and other governments to slow down the industry through taxes and regulations – such a jump is unlikely in the near future. . Then again, during the years when many people expected the oil markets to be rational, they were completely shattered.
One thing is for sure – if such a commodity jump is to come, the pain for the American pump has already begun.
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In fact, Binden’s administration and congressional Democrats plan to make any big gains in the oil and gas industry in the coming years.
Here are two great ways you plan to go about it
Invisible excavation costs – Hill reports that Oregon Senator Ron Widen, chairman of the Senate Finance Committee, is aware of the need to act on Binden’s advice and reduce the cost of drilling in the Democrats’ $ 3.5 trillion budget. .
This is a tax treatment that has been in the US tax code for 105 years, and years ago it was banned from using major, integrated oil companies. It hurts the little ones, but Weiden, Biden and other proponents of the repeal can be sure that they will continue to tax the “big oil” correctly.
The GTP tax doubles – As I wrote in July, Biden’s administration is also proposing to double the GILTI tax on 10.5% to 21% of international business revenue. This is a tax intended to collect intangible business revenues from overseas, but it is applied to all revenues by the Binden administration, especially the oil industry and the actual revenue from its operations.
A new study by ASU Seidman Research Institute-EY Quest this month shows that the tax increase could reduce the state’s economic activity by only $ 5.1 billion and risk 47,000 jobs in its first year. Applied across the country, this leads to enormous numbers.
And it’s not just big, global companies that are hurting. The study will have a negative impact on small businesses through the operation of local supply chains, reducing labor income and ultimately consumer spending.
It is a bad idea to use this tax more than it intended when it was passed in Congress; Double the tax rate is a bad idea and should be abandoned.
“Infrastructure” and expenditure accounts have many new fees and taxes on the industry, but these are some of the worst ideas among them. A.D. It is unknown at this time what he will do after leaving the post.
My guess is ‘no’.