Replies to post #18327 on Options Wonderland

[samaelrocks]

I have to respectfully disagree with you. Supply/Demand hasn't a damned thing to do with oil prices. OPEC and our government's refusal to open domestic supplies are the culprits.

I do agree we'll never see $80 a barrel again.

[Paul123456]

The supply cituation dictates that oil should be in the $80-$90 range. The rest is speculation. Traditionally the commodities prices move up as the interest rates do. But this time its totally reversed, so there are two possibilities here, either both oil and bonds (prices, not rates) are in a bubble, or fundamentally something changed. Lots of people will short oil in the $120-$125 range, which of course could send it sharply lower, or if it continues to go up the short squeeze will send it sharply higher, either way my stop limits will be in. lol.