The price of oil has been steadily moving up throughout February. When the markets closed Friday, the price of West Texas Intermediate crude was $61.50 a barrel. It is an increase of $13.88, or 29 percent, from the start of the year. It is also an increase of $99.13 from the lowest point the price per barrel reached back on April 20th of last year.  

While the prices have seen fluctuations over the past five years getting into the $70 range, many were previously hesitant to say increasing prices would be the new norm. This time, though, people aren’t calling it a fluke. 

“It would appear to be something we can count on, I mean, not precisely this price, but this underlying strength,” said Golden West business commentator Paul Martin. He pointed to an increasing demand for oil, while at the same time North American supplies were on the decline, as contributing factors. However, for commodities, it appears to be a cyclical event, with not just oil, but potash and uranium too, seeing increasing prices. 

Martin added commodity prices, in general, are up, and it’s all part of a cycle. “There’s a bottom and then it starts to climb back up, and it would appear that we’ve hit the bottom and we’re starting to climb back up.” 

He pointed to some experts who are saying this is the beginning of a commodities cycle for the next five or six years, which is bigger than just a one-off increase due to something like the Texas winter storm. The oil sector isn't the only one to see an increase in demand, either. Crop prices have been going up dramatically, and that translates to more demand for inputs, which results in an increase in the price of potash. 

“Nutrien just put out their report last week, or quarterly report,” Martin stated. “They’re sold out for North America for the spring seeding season. They can still produce, obviously, but they can’t get it to market and into the hands of producers before April.” 

The economists say the numbers are backing up the optimism as well. A report from J.P. Morgan Chase said commodities are about to enter a super-cycle for the fourth time in the past 100 years, and the expectation is we will see a repeat of the ‘Saskaboom’ that we saw from 2006-2009.  

“I’ve actually kind of coined the phrase Saskaboom 2.0,” chuckled Martin. “It’s time for us to smile, it looks like it’s our turn again.”