How Much Higher Can Oil Prices Go?

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…