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dan45mcc

Oil’s return to $100 has become the biggest bet in the crude options market.

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Oil’s return to $100 has become the biggest bet in the crude options market.

 

The price of options to buy December 2011 futures at $100 a barrel jumped 14 percent on Nov. 24, the largest one-day gain in three months, according to data compiled by Bloomberg. So-called open interest for the contract has risen 51 percent this year to 45,424 lots, the highest for any crude option on the New York Mercantile Exchange.

 

http://finance.yahoo.com/news/Talk-of-100-Oil-Returns-as-bloomberg-1317601168.html?x=0&sec=topStories&pos=1&asset=&ccode=

 

 

That's how I am betting.. As the economy continues to slowly recover Oil has no choice but to climb

 

 

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It will be interesting to see what happens with oil today. The price jump may be related to the increased tension having to do with the North Korea situation. If that is the case, tensions, especially in the Middle East,  are probably going to go higher with the bombing of two Iranian nuclear scientists last night.

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very true... it doesn't take many news of possible war/embargoes... from the middle east in the news to cause speculators and oil companies to say "oh ****, there might be war"... better put in more orders before prices jump... causing the price to jump... 

 

should help increase the cost of gas, causing the differential between gas and e85 to increase...

 

 

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If that is the case, tensions, especially in the Middle East,  are probably going to go higher with the bombing of two Iranian nuclear scientists last night.

 

That was pretty wild wasn't it..right out of James Bond..2 Assassins on Motorcycles drive up to the vehicle and attach bombs (magnets?)that go off a minute later

 

 

 

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Supplies are important but Consumption I think is a more accurate indication of price  trending

 

The recession dip and now you are starting to see the recovery handle ..

 

 

oilconsumption.PNG

 

width=500 height=52http://www.e85prices.com/oilcons.PNG[/img]

 

 

Oil Has to go higher  in this recovery even without any Wars/Rumors of War

 

 

 

 

 

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That was pretty wild wasn't it..right out of James Bond..2 Assassins on Motorcycles drive up to the vehicle and attach bombs (magnets?)that go off a minute later

 

It could have been a sticky bomb. Remember Saving Private Ryan.

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Oil Has to go higher  in this recovery even without any Wars/Rumors of War

 

In a way I hope that it is something other than supply/demand fundamentals since as oil rises it will have a chilling effect on the economy. And it also means that when we get back to our previous level of economic activity oil will go back to it's previous level which at the peak was around $140 per barrel.

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