What does OIL (BRENT PETROL) mean for the world economy?#BRENT Oil (Petrol) 1W chart;
What does oil mean for the world economy?
Oil is critical to the world economy and is considered the basic energy source of modern industrial societies.
And then there are the quarterbacks. Market makers, a term we hear a lot in the crypto space. These and similar important charts cannot be moved by ordinary people. They cannot afford it. Only the most important countries in the world can do it.
So what usually happens when these charts come to trend breaks?
While situations such as war, geopolitical tensions, chaos, finding a vaccine for an existing virus move the chart upwards,
Situations such as viruses, recessions, economic depressions also move the chart downwards.
Significant chart movements are only possible with these and similar news. Conscious or unconscious. If you think there is anything unconscious in the world, I can't say anything about it.
The trend line in the middle is important.
I have indicated the details of the important breaks and critical intersections on the chart.
But there is one place I would like to draw your attention.
Russia-Ukraine war;
The chart is rising sharply with pre-decline gapped openings and momentum candles.
What happens in the world in such a situation?
Energy, industrial production costs, important basic services such as electricity, heating, transportation, raw material prices would increase.
Global economic slowdowns.
Geopolitical tensions increase.
In short, inflation would be fueled.
Just like the economic crisis that would be caused by a sharp fall in the oil prices of the countries that depend on oil for their economies.
Then energy companies cannot make a profit. Labor prices would fall, companies would go bankrupt, unemployment would rise.
In short...
Inflation was deliberately and willfully fueled. Because it was time to start raising interest rates.
The world was not ready for that yet.
With the war, the chart went up 40% in 2 weeks.
I am not talking about any coin in crypto, I am talking about the oil chart increasing 40% in such a short time.
You all know the scenario afterwards.
The top of the chart is where the red needle is. March 2022.
The Fed has officially started the cycle of rate hikes with 25 basis points.
