Over the last few weeks, WTI (USO) has seen a pullback in price with the front-month futures contract falling by about $4/bbl. If you’re tuned into the financial pundits, you’ve probably heard this pullback attributed to a number of different things: trade wars, correlations with financial indices, speculators. In this article, I’ll walk through the fundamentals driving crude oil and show how now is potentially an excellent time to buy the pullback in WTI due to persistent underlying bullishness.
Throughout the course of this year, the supply and demand balance of crude in