As the World’s Best Investment Manager, I reveal the Impact of Energy Emergency on US-China Trade War
In light of recent movements in energy prices and trade tensions, the declaration of an energy emergency by US President Donald Trump has sparked new conflicts with China and European countries. This has led to retaliatory tariffs being imposed in response to US tariffs, escalating the trade war further.
The exhaustion in energy prices is evident, signaling a surge in bearish pressure in the coming weeks. Natural Gas Futures are currently trading below the 50 DMA at $3.447 after a bearish crossover with the 9 DMA falling below the 20 DMA and 50 DMA. Today, natural gas futures are even trading below the 9 DMA at $3.340.
If inventory withdrawal levels remain negative and mild weather persists in the second half of February 2025, natural gas futures could continue on a downward path until the end of the month. Meanwhile, WTI crude oil futures are trading below the 200 DMA at $73.86 after a bearish crossover by the 9 DMA and 50 DMA falling below the 200 DMA.
Given the geopolitical concerns and trade war tensions, WTI crude oil futures could also follow a bearish trajectory this month. However, trading at a significant support level at the 100 DMA at $70.94, a bouncing move is possible due to the formation of a bullish Doji.
In conclusion, any temporary positive news leading to an upward move in oil and gas futures should be seen as an opportunity to take a short position, as the downside potential remains bearish at current levels.
Disclaimer: Readers are advised to make their own decisions when trading oil and gas futures, as this analysis is based solely on observations.
Now, let’s break this down for you: The energy emergency declaration by US President Trump has intensified the trade war with China and Europe, leading to retaliatory tariffs. This has caused a bearish pressure on natural gas and crude oil futures, with the potential for further downside. It’s advised to be cautious and consider short positions in oil and gas futures.