Question is how does oil affect inflation? What is the correlation between oil & inflation? What is the correlation between oil & the economy
- From what I’m learning, it seems to be just that everything runs on oil, to a heretofore unfathomably massive degree. The world is truly reliant on oil. It begins with shipping, & farming, the fuel that is used to sew the seeds of the harvest, then to transport the harvest to the stores.
- As the price of oil rises, the cost of transport rises proportionately & that cost is passed on to the consumer: the cost to sew, harvest & transport food increases, and so you see the price of food increase for the consumer.
- Companies disproportionally reliant on transport then should, or should often see correlation to oil prices.
/CL followed daily technical analysis falling wedge pattern to the T. Does this mean technical analysis works for commodities? If there is a fluctuating amount of supply coming from the ground, does that nullify the patterns of supply & demand & therefore the capacity for technical analysis to tell the story of supply & demand? Or does it just contribute to the overall story & showcase itself in the chart. Looking at how closely the price follows zones, levels, & patterns, it would seem that TA applies. But what is this thought I’m having that came from Edward & Magee Doesn’t TA only work when there is fixed amounts traded? With stocks even, isn’t there a set amount of circulating stock? I’m overthinking it maybe. Where does government intervention come in & nullify TA charts, like with commodities that the government subsidizes.
How does money supply affect inflation, & how does money supply affect oil. Where do supply & demand for oil prices come in for oil? Is the inflation we’re experiencing now come from a combined increase in money supply & shortage of oil due to Ukraine conflict? I’m sure it’s more nuanced than that, but are either of those statements inherently wrong?