VCG via Getty ImagesAs the pandemic rages, so do oil prices, reaching levels not seen since January 2020, when the virus was still a gleam in the epidemiologists’ eyes. Backwardation, when current prices are above future prices, implies that the market is tight, which is why current contracts have a premium. Low oil prices have also reduced North American production by as much as 2 mb/d, only some of which can be restored quickly. Oil Market Fundamentals, end-2019 and now. Of course, there are two other drivers of oil prices that need to be considered.

Source: Forbes February 08, 2021 12:33 UTC