"Deepest Backwardation Since ‘07 Shows World Short on Commodities"
“I’ve Never Seen A Market Like This”: Goldman Sees Shortages Of Everything, “You Name It, We’re Out Of It”
Backwardation? That simply means the current (spot) price is higher than the future price.
It's not always bad. For example: the December price for winter coats is normally higher than the July price.
But often, it means there is an immediate supply shortage.
And that is the problem, right now. In fact, some believe we are in a "super-backwardation".
"...futures curves in several key markets are trading in super-backwardation – a structure that indicates traders are paying bumper premiums for immediate supply." (Activist Post)
"Bloomberg notes that diesel futures are in their strongest backwardation since 2008, excluding expiry days."
Yeah... our inflation prediction is coming true.
So it's a complicated picture. And I will unpack it for you tomorrow night.
What does it mean for Water On Demand™*? For you? For your family?
Tune in for answers.
(And if you can't make it, you will get the replay automatically.)
Yours in Water,
Riggs Eckelberry
President & CEO
OriginClear, Inc. (OCLN)
Water On Demand™
* Water On Demand is a pilot program that is expected to evolve with commercialization.