Commodity prices have been on the rise since late in the 3rd quarter of 2020. Signs that the global economy would rebound faster than anyone thought possible, in the early phase, has spurred purchases of critical components in the modern economy. I have discussed the reasons for this in a couple of OilPrice articles recently. In this article, “How High Will Oil Prices Go This Year?” , I discussed the impact the decline in drilling in shale plays was having on crude stocks, and resulting trend higher in prices. In the second article, “How Much Higher Can Oil Prices Go This Year” , the concept of Backwardation taking control of the oil market was the principal thesis of that article. In this scenario traders pull oil from storage to sell now, as opposed to storing for better prices in the future. Now we will tie this into the thesis […]