Never ending battle with Oil
Trading involves a high risk to the invested capital. Understand all risks before investing 

Never ending battle with Oil

Ever since the recovery from the pandemic started, the U.S. Administration has been constantly trying to fight the increases in Oil prices. The main reason behind that is due to the positive correlation between the Oil prices worldwide with raw material prices, and the prices of goods sold.

 

Oil prices has been sky rocketing since the beginning of year 2021. Despite those increases, the U.S. government played a vital role in some retracements that occurred.

For example, if we go back to November 23 2021, where Biden decided to release 50Miollion barrels of oil form the strategic Petroleum Reserve in order to lower prices for the citizens we notice that Oil prices did really decrease from approximately USD85/Barrel to mid-60s.

 

However, this movement (Figure 1) was not long lived, whereby we instantly saw and increase in prices heading to as high as USD125/Barrel.