The two major global crude oil benchmarks saw solid advancements this week, marking the start of what should be a weekly rebound.
Both gained a bit less than 1% on Monday, with New York-traded West Texas Intermediate (WTI) adding 0.79% and London-traded global benchmark Brent gaining 0.82%.
Still, as the pundits are quick to point out, both are down for the month, with WTI off roughly 6.5%, and Brent down about 5.7%.
What's driving the talking heads' fretting? The fact that oil was on a largely unstoppable tear through the first half of the year. WTI pushed above $74 a barrel by the end of June, and Brent was close to touching $80 at the time.
Still, I remain bullish on both benchmark prices. I don't think triple-digit prices are too far off in the future.
And there are three overarching facts to keep in mind when examining this bullish oil pricing environment…
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.