Regarding 118, this is about probability. Given we're at 96 and backwardated? What is the probability that we hit 150?
Familial experience in one of the major US energy (oil) corporations headquartered in east Texas.
> Regarding 118, this is about probability. Given we're at 96 and backwardated?
The 118 peaks are separated by 4 weeks and the local minima of 92 from a week ago has already risen to almost 98 as of 6/3 close-of-business. This does not support a backwardation trend and, instead, could be reasonably identified as the beginning of another spike.
> What is the probability that we hit 150?
This is a question energy executives must answer. Fortunately, one did:
The price of physical Brent oil cargoes will spike to $150
to $160 per barrel when inventories hit all-time lows in
coming weeks, the executive said. “When the price gets to a
certain level, demand destruction brings it back into
balance,” he said.[0]
It is not.
The only way to support a backwardation claim is to ignore the 24 months of pre-war market behavior. If analysis is limited to the last three calendar weeks, then the local minima might be called a backwardation.
Problem is, there are no geopolitical, market demand, and/or military indicators to support this point in time being an actual backwardation.