Opening Statement from the April 2022 CCPM Forecaster

Opening Statement from the April 2022 CCPM Forecaster

Originally published on April 3, 2022 (pre-market release)

Overview

WTI and Brent crude oil pricing have held above $100/barrel for several weeks adding to the worrisome trend of global inflation. Despite high and rising inflation, economic growth remains fairly strong. But there is mounting weakness in Europe as a result of raging energy prices, the recent decree by Russia for oil and gas payments to be made in rubles, and a great deal of geopolitical and economic uncertainty.

After having soared to multiyear highs a few weeks ago, many commodities entered a significant correction. But this “resting phase” could be setting the stage for another strong rally.

We want to emphasize that current pricing of many commodities (notably oil and gas) is more of a reflection of the negative sentiment from traders rather than supply and demand constrictions. Thus, at some point...