It has been a wild ride for the energy market in 2017, setting pulses racing for even the steadiest of investors.
Just a few months ago, or until September, the commodity had a very difficult year. In June, U.S. West Texas Intermediate (WTI) fell to nearly $42 a barrel — the lowest in ten months. Since then, the contract has risen about 37%. In fact, WTI hit a more than two-year high of around $59 recently.
Unlike other short-lived rallies over the past three years, we believe the current higher oil prices are a result of improving fundamentals. Declining inventories and the extension of OPEC-led supply cuts until the end of 2018 are the two major factors helping to balance the market and support the strong uptrend.