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OIL UP TO THE EYEBALLS

23 August 2009 by Cullen Roche 3 Comments

If you can tell me where the price of oil is going in the next few weeks I’ll tell you where the S&P is going.  Stephen Schork believes oil is heading to $85 if we settle over $75.  Unfortunately, the fundamentals say the price of oil should be $50.  Schork is short-term bullish, but long-term bearish.

Cullen Roche

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Comments
  • Jeff

    If you chart WTIC and the s&p500 you can see the correlation. WTIC has an ascending triangle forming – upside breakout is 75, downside break around 66.

    “Oil prices made a rare deviation from equities on Wednesday, when the Department of Energy reported a massive 8.4 million-barrel drop in U.S. oil inventories last week. Last week’s inventory drawdown came as owners of oil on tankers took advantage of the wide gap between September and October futures by holding off from delivering their crude to shore. The October contract’s discount to November is less than half as wide, which could send oil flooding to shore in the coming weeks.”
    http://oiltradersblog.blogspot.com/2009/08/oil-remains-just-below-2009-highs.html

    08/24/2009 at 5:36 AM
  • jt26

    Oil futures will probably be more volatile because of the speculation that is resuming (Keynesian monetary policy has always done this … try to create business inflation via business investment, but get asset speculation instead), and he and others are right. Short term the price could go anywhere (%20-150), but China buying oil plays over the last 2 years hints at a long term oil price of $50-60. (Excluding devaluation boost of US dollar.)

    08/24/2009 at 7:08 AM
  • AWF

    The Oil Trade is a US Dollar Trade–exchange rates—get it

    Who is betting on a Stronger Dollar–are you kidding me!!

    08/24/2009 at 9:02 AM