On the July 13th episode of Mad Money on CNBC, Jim Cramer shared our WTI crude oil analysis.
One by one we have witnessed stunning commodity rallies go bust as producers scramble to bring supply to an overvalued market. The first to sour was lumber and copper in early May, next were the grain markets such as corn, soybeans, and wheat. Later a historic rally in lean hog futures succumbed to sharp selling, and, finally, we saw gold and silver suffer the consequences of an FOMC meeting in mid-June. Crude oil (and natural gas) has been the holdout, but that doesn’t mean the energy markets will avoid the same fate other commodities have experienced. In fact, it is probably naïve to assume oil is immune from the boom and bust commodity cycle that has been on display in 2021 and has existed since the beginning of time.