As the charts below
show, has oil not only traded higher but futures contract looking several years
ahead are also appreciably higher. In the recent past, nearby future contract
were higher but distant futures contract contemplated lower oil prices. That
has begun to change over the past quarter.
High oil prices are no
longer being looked at as a “temporary event of uncertain duration.” Between China‘s growing use of petroleum, their global
attempts to assure a study supply, the Iran situation, high Oil may be a
persistent part of the market’s future (Notice no one is even talking about
post hurricane recovery anymore).
Quote of the Day
"I don’t think the heavy
stuff is going to come down for a while yet."