Strong Backwardation in Crude Points to Higher Prices

Crude oil prices broke out this week, hitting a fresh 3-year high near 64.77, a strong prompt demand has created a term structure that is in steep backwardation.  Inventories declined in 2017 for the first time in 4-years as refiners are running at near record rates.  Crude oil production in the United States is expected to increase in 2018 by more than any other country shooting above the 10-million…