With crude showing impressive momentum, ATEC provides a short update to our earlier piece titled Crude Awakening? published on 3rd September.
Our current scenario suggests to us, on a daily time-scale, to look for crude to possibly achieve north of US$90/bbl.
As it gets there, we should then be on the alert for signs of exhaustion and a subsequent period of correction, which should see a more sizeable retracement of its entire rally since March 2020.
We suspect when that happens, it could provide some relief for the current inflationary concerns. For now, we take it one day at a time.