US Global Funds put together the first three charts. Most of the increase in global oil production since 2004 has come from high cost producers (USA and Canada) or high risk areas (Iraq).
The second chart shows the Global Manufacturing PMI is rising.
And oil prices rise when global growth picks up.
Supply disruptions have been increasing in 2016 for various reasons.
Chief economist at Wells Fargo Asset Management, James Paulsen has noted that commodity prices start to rise after US unemployment drops below 6%.
This notion is supported by the following chart published by S&P-Dow Jones which states commodities had the best March in a decade.
The US dollar appears to be following previous rate hike cycles eliminating a headwind.
And it appears we are following a previous cycle.
Oh, and Forbes has caught on to my theory that the Aramco IPO is the pump and dump of the century (drive prices down for a reason to float shares and then cut to make insiders paper millions).
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