Increasing Profitability
Through Market Knowledge

Fundamental Analysis

Empirical Models Suggest Higher Prices; Risk Reversal Threat Remains High

Long-term global supply & demand models suggest current oil prices are underperforming historical values. Regression analysis of 6-month average supply-demand differentials versus WTI futures prices since 2005 have oil near $80 per barrel. An intercommodity model regressing oil prices to correlated commodities also suggests higher prices, although to a lesser extent. As of December 31, …

Empirical Models Suggest Higher Prices; Risk Reversal Threat Remains High Read More »