Goldman Sachs has theorized that OPEC is trying to engineer crude prices in the USA into backwardation. US producers who are locking in oil prices through hedging as opposed to selling into the spot market are therefore penalized by accepting a lower price point.
The author of the article below, however, makes his case that oil prices are rising simply because of rising worldwide demand forecasts. Interesting food for thought.
https://www.forbes.com/sites/jimcollins/2017/09/27/rising-demand-will-continue-to-drive-the-rally-in-crude-oil-prices/#75b355e62749
The author of the article below, however, makes his case that oil prices are rising simply because of rising worldwide demand forecasts. Interesting food for thought.
https://www.forbes.com/sites/jimcollins/2017/09/27/rising-demand-will-continue-to-drive-the-rally-in-crude-oil-prices/#75b355e62749
