Astrological Forecast For Oil Industry: Revival Likely By Early June, But Volatility To Stay
The oil industry is currently facing one of its toughest challenges ever on account of the impact of coronavirus. Crude oil prices have plummeted as demand has nosedived to multi-year lows due to lockdown imposed by major global economies to combat COVID-19 crisis. According to market experts, the future outlook appears bleak over fears of slow recovery in demand due to excess storage of crude and weak supply cuts.
The oil industry is no stranger to volatile market conditions. While global oil prices were relatively consistent in the nineteenth and early twentieth century, prices shot up in the 1970s partially in response to the 1973 and 1979 oil crises. Again, in 1980, globally average prices spiked to $107.27 per barrel, only to decline rapidly in the early 1980s due to the embargo imposed by OPEC. Subsequently, in the aftermath of the global financial crisis of 2008, global crude oil prices spiked, which was followed by a crash. The record-high oil price was reached in 2011. Thereafter, the global average price of oil dropped to $43.73 per barrel in 2016. By April 2020, the price dropped by 80 per cent, down to a low of about $5, due to the 2020 coronavirus pandemic and the Russia-Saudi Arabia oil price war. On April 20, WTI crude futures contracts dropped below $0 for the first time in history.
Interestingly, in all such times of severe price variations, certain astrological configurations were formed in the zodiac which triggered the crash, followed by revival.
Chart-1: Biggest one-day per cent drops in WTI crude prices since 1991
Source: FactSet data from a news article
Astrological reasons for price volatility
Any kind of market fluctuation is a result of cumulative factors. The first condition for any price volatility is weakening or affliction to Jupiter. In Vedic astrology, Jupiter signifies wealth, knowledge and wisdom. The weakening of Jupiter gives rise to a situation which belies financial knowledge. Jupiter also signifies long term trading, banks and financial sector and hence affliction to Jupiter is the prime condition for a weak market outlook. Affliction here means aspect or conjunction with Saturn, Mars, Rahu and/or Ketu, or its placement in its debilitation sign, Capricorn.
The second indication is the association of Mercury with zodiac signs like Sagittarius, Aquarius and Libra by way of position or aspect. Mercury signifies speculation, short-term trading, stock market and logic. Sagittarius is ruled by Jupiter, the planet of wealth, and indicates public sentiment and general welfare. It is a fiery sign and signifies sudden movement. Aquarius is an airy sign and denotes financial knowledge, investors and rumours, while Libra ruled by Venus denotes trade and consumption.
The third condition is forming of any kind of co-relation between Saturn and Mars either through conjunction, mutual aspect, common aspect on a particular sign, and placement in each other’s sign. In fact, this is a very important condition and both these planets seem to be related whenever any calamity has struck the planet.
Another important condition is an affliction to Moon, which signifies petroleum and navigation, or the zodiac sign it owns, Cancer, which has a predominantly watery composition. Some other factors include the prevalence of a Kaal Sarp Dosha or hemming of planets in Rahu-Ketu axis, retrogression of major outer planets like Saturn and Jupiter and occurrence of the solar or lunar eclipse.
Interestingly, these factors were found to be in vogue on the days when oil prices crashed in the past. It can be seen in Chart-2. It may be noted that while the chart depicts the exact date when the prices plunged, the downward trend had begun a few days before that.
Chart-2: Astrological factors at play on the day of the crash in oil prices
Way forward
The already volatile oil and gas industry is currently caught in an astrological web. Reasons are three-fold. One, Saturn moved to Capricorn on January 24, 2020, thereby afflicting Cancer sign. Then, on February 8, Mars moved to Sagittarius sign from where it afflicted the Cancer sign with its eighth aspect. The situation got worse when Mars entered Capricorn on March 22 as both Saturn and Mars became conjunct and the common seventh aspect continued on sign Cancer.
Another important event took place on March 30 when Jupiter joined both these planets in Capricorn sign. In this sign Jupiter is debilitated i.e. in its weakest position in the zodiac, signifying weak market conditions in general. You may recall that last time when Jupiter was in the same position was in 2008, and that is the year when we saw crude oil prices going at an all-time high of $147 per barrel, but crashed soon thereafter. This time, Jupiter has more teeth to create volatility since it will form a deep connection with Saturn through conjunction till April 6, 2021.
From an astrological standpoint, the next two years will be defining for the oil and gas industry. This is because Saturn will be placed in Capricorn sign till January 17, 2023, from where it will aspect Cancer sign thereby pushing the industry to reinvent itself. This will provide a new direction to the industry in the form of new technological advancements in the exploration of crude oil and natural gas, construction, project management and discovery of new minerals/metals. Also, the sector could see the use of new financial instruments to raise investments and fund growth. Major oil and gas finds could be reported from Bangladesh, Afghanistan and North-West India. Geo-political developments in Mexico and Iran can have far-reaching consequences for the industry.
Going by the planetary position, the following trends are discernable in the short-term. It may be noted that these trends are not just based on the impact of Covid-19 but also takes into account other natural, geopolitical, economical and technological factors that may impact the industry.
To sum up, over the next one year, the oil prices will be somewhat cyclical in nature, wherein it will first go up gradually till August, post which it may nosedive only to strengthen again from October. Then again, towards the end of December, we may witness a decline in prices. From the middle of January 2021, prices will start to improve and from April, global crude prices are expected to stabilise in the range of $65 to $75 per barrel.
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