Oil prices hit two-year-highs on Monday amid signs of continuously tightening markets and strong signals from Saudi Arabia and Russia that they are willing to extend their production cut deal beyond March 2018. The sentiment in the oil market has not been this bullish in more than two years, with oil demand growth expected to be strong along with OPEC’s rhetoric that it would do “whatever it takes” to rebalance the oil market. Brent has been trading above $60 a barrel for several consecutive days and its futures curve has been in backwardation for months. WTI surpassed the $55 mark, and it, too, appears to be approaching backwardation—a sign of a tighter market. Yet, we are only in the sixth year of a commodity bear super-cycle—which usually lasts 20 years on average, and “this oil bear has room to run”, Austin Pickle, Investment Strategy Analyst at Wells Fargo Investment […]