November 24, 2020
Stocks are back at record highs.
Real estate prices are at record highs.
Bond prices, are (still) near record highs.
Copper, an industrial metal that tends to be an early signal of an economic turning point, is nearing a breakout to a seven-year high.
All of this, while oil, the most highly traded commodity in the world, remains more than 30% lower than the highs of just this year.
But oil is on the move.
The day before the election, oil made a low of $33.64 a barrel. It's now up 34% from that level.
And as you can see in the chart below, the yellow line is the highest price traded in the crude oil market in the past eight months. That was broken today.
What's most interesting, is that this move in oil comes as money is pouring into electric vehicle related stocks (the anti-oil trade).
This demand for electric vehicle stocks is, of course, driven by the clean energy/Biden plan. And with a presumed next President that has vowed to kill the fossil fuels industry in the U.S., most would expect oil prices to be heading toward zero.
But as we discussed earlier this month, if Biden regulates the U.S. shale industry into extinction, OPEC will be back in charge. And oil prices will go much higher, even in a world that’s transitioning to cleaner alternatives to oil.