(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.

For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   In addition to reviewing the key planetary and technical influences on US and Indian stocks for the short and medium term, I also provide an astrological analysis of potential upcoming moves in currencies, gold and oil.

Photo Credit: Brent Moore