Oil Prices Could Be Headed Upward According To Cramer: Examining The Ongoing Boom And Bust Cycle In Commodities
- Shams ul Zoha
- January 4, 2023
- 7:05 pm
WHAT YOU SHOULD KNOW
- Oil prices are expected to range from $65 to $70 a barrel at the lower end in 2023, and could potentially reach the mid-$90s or even the low $100s at the higher end.
- Jim Cramer suggested investing in dips in order to benefit from the ongoing boom and bust cycle in commodities.
Jim Cramer, a well-known market commentator, used Carley Garner’s chart to illustrate how certain commodities may soon experience a resurgence.
Carley Garner’s analysis of the charts indicates that the cycle of highs and lows in commodities is a continuous process, and this is currently beneficial for oil, natural gas, and wheat prices, according to Jim Cramer’s comments on CNBC.
In the first half of 2022, commodity prices experienced a notable surge due to the conflict between Russia and Ukraine, which caused worries about potential supply issues.
As inflation increased, the Federal Reserve raised interest rates, leading to worries of a recession and a decrease in demand, resulting in lower prices.
In the last year, the United States Brent Oil Fund BNO experienced an impressive increase of 26%, while the Vanguard Energy Index Fund ETF VDE saw an even greater surge of 40%.
Jim Cramer looked at the weekly chart of West Texas Intermediate crude to corroborate Garner’s analysis.
Garner declared last year that the price of oil would return to its prior level once the sanctioned Russian oil was sent to India and China. Cramer observed that the chart demonstrated that his prediction had been accurate.
According to a market expert, Garner anticipates that the price of oil will range from $65 to $70 a barrel at the lower end in 2023, and could potentially reach the mid-$90s or even the low $100s at the higher end.
Jim Cramer stated that the channel should remain resilient, and that is why he suggested investing in dips.
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