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Commodities Today: Rally Underway, Oil Names Move Strongly Higher

Oil's recent move higher is not only pushing commodity equities higher but the general market as well. The bullishness is flowing over into other areas of the market as the thinking is that a 'Goldilocks' scenario could play out for the economy where oil prices rise enough to keep the energy sector humming along but low enough for consumers to enjoy the benefits of lower fuel costs. The fact that the Saudis have been perceived to be open to the idea of higher oil prices since the King's death is also helping fuel this rally, and it would seem to us to be a smart move to allow prices to rise a bit and stabilize. The new leadership will want to have good relations with neighbors and OPEC partners, so allowing prices to gravitate to more reasonable levels might be beneficial to all as it would allow less pain for certain key OPEC members and ease geopolitical pressures mounting in the Middle…