Written by Lance Roberts, Clarity Financial
Back in September, I asked the question whether the run-up in oil prices was sustainable. Given that oil prices have been a huge contributor to both earnings and economic growth in recent quarters, and the expectation that inflation was surging back, this has been a crucial commodity to pay close attention to.
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RIA analyst, Jesse Colombo, recently updated his analysis on this topic and the continued imbalance of non-commercial traders which suggests the correction in oil prices has now started.
As noted above, if our analysis proves correct, and oil prices do decline further, the negative impact to economic growth combined with fading support from natural disasters will push inflation and interest rates lower, along with commodities such as oil.
