Light Crude Oil Flashes a Major Bullish Signal on Yearly Time Scale
The anticipated bullish signal on the light crude oil price is now confirmed on the yearly close. The double hammer / tweezer bottom combination is a major reversal pattern that portends significant upside potential for the next few years. As such, the closest resistance area in the US$ 76-80 price area should easily be attained in the next two years.
Inverse Relationship between Oil Price and Oil Demand Growth Rate
We also previously highlighted the inverse relationship between the oil price and the oil demand growth rate versus time:
A better way to visualize this relationship is by plotting directly the oil annual demand growth rate vs. the annual oil price:
Peak Oil Demand will be Confirmed in the Coming Years
Therefore higher oil prices in the coming few years will accelerate the development of competing technologies with oil and gas demand peaking as a source of primary energy in favor of solar and wind energy now at at a tipping point:
and with electric vehicles to swamp the transportation market like an unstoppable tsunami in the coming 10 years or less:
It is therefore our conviction that the expected oil price increase of the coming few years will accelerate peak oil demand that should become visible by the turn of the decade with the oil sector getting in the doldrums soon thereafter.