Is Oil Heading for a Supercyle?
We’re well into the back half of the year and oil prices remain below $100 per barrel. This seems like such an achievement, given that oil prices unprecedentedly hit negative territory in April last year. With demand hitting rock bottom, producers had no storage available and agreed to actually pay spot buyers to take crude. Following those dark days for the oil market, demand has significantly recovered. While spot prices traded at historical discounts to futures prices in 2020, the situation has flipped. The world’s economy needs oil again and needs it now.
By Andrew Lane | August 20, 2021