Issue 8 – Oil Demand is Recovering – Supply isn’t

Last week we discussed how global energy prices have been on an upward trajectory since hitting bottom in the spring of 2020. By no coincidence the April 2020 lows in crude oil, natural gas, and gasoline coincided with plummeting demand attributed to Covid.

In North America, futures contracts on crude oil, natural gas, heating oil, gasoline and propane are traded on the New York Mercantile Exchange (NYMEX). Crude oil, as measured by the NYMEX West Texas Intermediate (WTI) futures contract, traded above USD$95/barrel on February 14 surpassing a level not seen since the summer of 2014. Similarly, natural gas prices as measured by NYMEX Henry Hub Natural Gas, spiked above the USD$7 level in January, reaching its highest level since 2008. NYMEX gasoline futures have also returned to 2014 levels: the recovery in prices has been dramatic.


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By Charles Marleau CIM® and William Mitchell CIM®

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By Charles Marleau CIM® and William Mitchell CIM®