Oil prices have rallied back to the point they are almost ready to match pre-Covid levels. There are two key drivers for this miracle, which no one predicted early on as being possible in this period of time. The first is the production curbs by U.S. producers and of course, the millions of barrels of oil per day withheld by the OPEC+ cartel. The second is recovering demand, putting-so far, slight pressure on supplies, and creating a market condition known as “Backwardation.” A market condition where the future price of a commodity is higher than the present, or “spot” price. This is bullish for long term crude prices. Another driver for the current push higher in oil prices is the expectation for continued stimulus for the U.S. economy. So far this expectation has buoyed prices over the concerns raised by Friday’s Labor report , suggesting that employment levels continue […]