Monday, July 25, 2011
Speculators and hedge funds to push oil to $120 by year end.
And they are announcing their intentions so you can prepare for the disaster. Kind of like the Germans warning the passengers of the Lusitania before they sailed.
The biggest bet in the oil market has become a 20 percent increase to $120 by the end of the year as global growth drives demand for raw materials.This is the next big oil run up coming. The alleged reasons are malarkey. The economy will stagger under the blow of either a Teabaggers sponsored US default or the return of the Depression when the cuts pull the last support out of the economy will spread worldwide faster than last time.The high oil prices will only last a month or two after the New Year as the smart money takes its profits.
The number of contracts held by traders in options to buy West Texas Intermediate crude at $120 a barrel in December totaled 45,502 lots on the New York Mercantile Exchange as of July 21, 4,226 lots more than the next-highest wager, which is for $125. Open interest in the two contracts jumped 29 percent in the past four weeks, according to data compiled by Bloomberg.
Traders anticipate this year’s gains will exceed forecasts of the most accurate strategists as economic expansion in emerging markets outweighs the debt crisis in Europe, slowing U.S. growth and efforts by Saudi Arabia and the International Energy Agency to curb prices. Bullish bets mark a turnaround from April, when $80 a barrel was the favorite wager and futures fell as much as 22 percent in the next two months.
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