January 10, 2022 - (Gold Market Wire) - Crude Oil prices are holding more or less unchanged, as US/Russian discussions over Ukraine and NATO enlargement take place in Geneva. While the market is idling, there is little chance of any significant consensus or agreement being forwarded in discussion. Expectations are decidedly low.

With that in mind, we take a look at the market's chart action:

Having been long for weeks now, we still can see no reason to shed any length. Right now, the market looks poised to move higher, and the lack of meaningful retracements, except for one on Dec. 31, gives participants a flavour of just how strong the market is. In short, it can see no reason to sell-off. So paralysed is the market by a combination in international affairs and general Green political postures, that we continue to maintain that Crude Oil is cheap.... strange as it may seem to American car drivers and European home heating and electricity consumers.

It's bad enough that the international security dimension is beset with real problems that are threatening potential war, but the scramble for individual energy autonomy, brought about by Covid is only exacerbating global energy demand. In this context we note a recent announcement by PEMEX (the Mexican State oil company), that it will, within two years, be ending all energy exports, and direct all Mexican production for refinement and distribution within Mexico. We are at a true watershed moment, where soon, the cost of energy will simply become so crippling to the Western world that it will impede any chance for future economic growth. It is getting that serious. As/If we cruise through $100 a barrel the crisis of the move to "green" energy in places like Germany will put the EU's largest economy into a death spiral, where people's existential security is in danger.

It's all too easy to blame Russia for everything, the way the West blamed "The Arabs" in the 1970s, but this is largely self-inflicted. Political reason has seemingly departed the stage and the march towards the Green energy revolution is about to wreck havoc in the western world - regardless of its allegedly virtuous intent.