Crude Oil Reaches 2-Month High, As Global Economy Keeps Improving
Crude Oil has been really bullish since the crash in March-April 2020. Back then, it seemed like this was the end for crude Oil, with the renewable energy coming up. The plans and actions from the global elite for the renewable energy have stepped up since then, but crude Oil has been increasing nonetheless.
We saw a retreat in March, after US WTI reached $68 early that month, but the 50 SMA (yellow) held as support despite being pierced and the bullish trend resumed again. Last week we saw another retreat, but it ended right at the 50 SMA once again on the daily chart. So, the bullish trend continues and now Oil is heading for this year’s highs.
The improving global economy, especially as norther hemisphere reopens after a long winter of coronavirus restrictions is keeping the pressure up for almost all commodities, especially for energy products and crude Oil is benefiting form it.
The US Chicago PMI report increased further to 75 points today, confirming the great momentum in the US economy, while the PCE report for April was sort of mixed, but showed that inflation is increasing.
Highlights from the PCE report for April 2021:
- Prior was +1.8%
- PCE core MoM +0.7% vs +0.6% expected
- Prior MoM +0.4%
- Deflator YoY +3.6% vs +3.5% expected
- Prior deflator YoY +2.4%
- Deflator MoM +0.6% vs +0.6% expected
- Prior MoM deflator +0.5% (revised to +0.6%)
- Full report
Consumers spending and income for April:
- Personal income -13.1% vs -14.2% expected. Prior month +20.9%
- Personal spending +0.5% vs +0.5% expected. Prior month +4.7%
- Real personal spending -0.1% vs +0.2% expected. Prior month +4.6%
- Goods +4.5%
- Durable goods +5.2%
- Services +3.1%
- Energy +24.8%
- Food +0.9%
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