Fundstrat Analyst – Thomas Lee – appeared on CNBC with a contrarian and “VERY BULLISH” forecast for OIL prices for the balance of 2017
His computerized model points out…. The last 4 times the oil futures market slipped into what he calls => “Backwardation”
The following 9 month period shortly thereafter … Saw “WTI” Oil prices rise tremendously in value
On each of the previous 4 occasions the oil markets have seen… “Backwardation”
“WTI” prices spiked between +25.00% percent -and- +72.00% percent for the following 9 month period
Using a price of WTI at $47.00 a barrel as a starting point…
As the Oil markets tip into “Backwardation” for a 5th time since 1990
Then the historical types of returns in the next 9 months would be equivalent to oil prices of: $59.00 -to- $81.00 per / barrel by February of 2018.