The Brent Crude rally since mid-August is now testing the descending trendline at $115/barrel. Breakout above this level would warn that the down-trend is ending. Recovery above $120 would signal a fresh primary advance. Rising crude prices are a negative sign for economic recovery, placing a further damper on consumer spending. Reversal below support at $105, however would signal a decline to $90*.
* Target calculation: 105 – ( 120 – 105 ) = 90
Interesting the Oil price last winter. Our domestic oil suppliers DOUBLED the price from 40 to 80 pence per litre overnight and we shut off our heating for the house for the duration as revenge against such greed. Fortunately we have an AGA (a wonderful pre-historic cooker) so we relied on that and were lucky not to have burst pipes as the temperature dipped to minus 17deg C (below zero F) on many nights. The reason we didn’t have burst pipes was because I disobeyed the building regulations and keep the Aga chimney UN-INSULATED in the attic – to keep that area from freezing. Just goes to show how little the “building bureaucrats” know and how it pays to go against their ignorance (without letting them know of course!). Anyway the chimney draws better with the hot gases rising faster in a cooler duct. Bureaucrats don’t understand common sense.
Regards, Chet, England.
Hi Chet, We still have a lot to learn about energy conservation. Better insulation is just the start. The price of oil will keep rising and we need to look for sustainable alternatives. Regards, Colin