(17 April 2022)
As we all know, inflation is high and shows no sign of coming down.
Last week's US inflation report showed consumer prices rose 8.5% in
March, which was an increase over February and indeed every month since
April 2021. There are numerous culprits in the inflation story
including excessive Fed stimulus, excessive government stimulus, the
end of Covid lockdowns and now most recently, Russia's invasion of
Ukraine.
Perhaps the single-most important determinant of inflation is the price
of crude oil. Not only is oil the world's main source of energy, it is
a significant component in the final price of everything we buy. If
the price of oil rises, then there is a good chance that the price of
everything else will rise too.
Oil prices had been on a steady rise throughout 2021 as lockdowns eased
and life was gradually returning to normal. The war in Ukraine
accelerated the increase, however, as prices shot up to $130 a barrel in
early March. While the initial geopolitical shock has passed, oil is
still trading well above $100 a barrel and above its pre-invasion
levels of $90. The longer oil remains above $100, the more difficult
it will be for inflation to return to its previous target range of 2%.
In traditional astrological terms, the price of oil is said to be
related to the condition of Saturn, which rules things found
underground. Saturn's transit of sidereal Capricorn broadly fits this
thesis since Saturn does well in Capricorn, a sign that it rules. But
since Saturn has been transiting Capricorn for over two years, we need
to look elsewhere.
Western astrology has often linked oil to the condition of Neptune,
since it rules liquids. Neptune is a more intriguing explanation since
Neptune has been conjunct Jupiter for the past several months. As a
bullish planet that is associated with growth, Jupiter's conjunction
with Neptune is a more appropriate picture for rising oil prices.
Jupiter exactly conjoined Neptune on April 12. Moreover, Jupiter and
Neptune just entered the sign of sidereal Pisces last week. Like
Neptune, Pisces rules liquids so it is perhaps not surprising that oil
prices should be elevated with the ingress of Neptune and Jupiter to
this sign.
But we can get another perspective on the question by examining the
horoscope of oil futures (March 30, 1983). We can see the
Jupiter-Neptune conjunction in a commanding position at the very top of
the chart in the 10th house. This placement suggests the bullish
attributes of the Jupiter-Neptune conjunction are more likely to
manifest fully in the crude oil chart. The bullish influence of this
conjunction is further magnified since it is very close to the degree of
the 10th house cusp (29 Aquarius) as it forms a 90-degree alignment
with the Ascendant (29 Taurus).
Saturn is also in the mix here since it is currently placed at 29
degrees of Capricorn. While Saturn is usually a bearish influence, its
effect here may be seen in a more positive light since it placed on the
more favourable 9th house cusp and aligns with the Ascendant exactly.
Also, much of the potentially negative Saturn influence may be
neutralized by the simultaneous placement of Jupiter and Neptune near
the same degrees of their signs. If Saturn was there at 29 degrees of
Capricorn without Jupiter or Neptune, it may have been a very different
outcome.
Another key factor in the current bull market in oil could be the
ongoing conjunction of Uranus (19 Aries) to Venus (19 Aries).
Uranus-Venus aspects tend to be bullish in financial astrology and often
correspond with especially sudden moves. Further positive
reinforcement is seen through the 30-degree alignment of Chiron (19
Pisces) with Venus and its own conjunction with natal Mercury. Overall,
it's a certainly very bullish chart.
So what happens next to oil prices? It's a complex picture that has to
account for the influences of a number of factors. The gradual
separation of Jupiter from Neptune in the coming weeks suggests
moderation of the recent bullish price impulse. Another potentially
negative influence is that Uranus will start to separate from its
conjunction with natal Venus in the coming days. While this may not
have an immediate impact, it will be one less positive factor in the
mix.
On the other hand, Neptune will remain very close to the first degree of
Pisces throughout the summer. Saturn will also station at 1 Aquarius
and thus will maintain its close alignment to the Ascendant (29
Taurus). These two placements could therefore provide a floor under
price for several months yet. However, prices may become weaker as
Saturn moves out of alignment with the Ascendant. This will occur
slowly during its retrograde cycle (June-October) but looks more likely
to manifest towards the end of summer. With oil prices likely to stay
high, inflation could remain a major concern for some time to come.
Weekly Market Forecast
Following last week's decline, financial markets could remain on the
defensive this week. Saturn will be in a close square aspect with Ketu
(South Lunar Node) throughout the week. And Friday's Mercury-Rahu
conjunction is likely to activate that bearish Saturn energy once
again. It's worth mentioning that heliocentric Mars conjoins Pluto on
Tuesday. Since both of those planets tend to be bearish, the
combination suggests a possible focus of negative energy early in the
week.
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Photo Credit: Brent Moore
