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No one really cares about the price of oil - it's gasoline that drives consumer sentiment.

I think oil is suffering from the stuffed strip at the NYMEX, the supply glut, the lack of demand and the fact that Iran's entire production is off-line and it's having no affect whatsoever on the global markets. So now the supply cushion is known to be much more than was previously stated and it's going to be much harder, going forward, to panic prices higher when a 150Kbd Nigerian pipeline goes down for a few days.

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Chart
Current SessionPrior DayOpt's
OpenHighLowLastTimeSetChgVolSetOp Int
Nov'1291.5191.7189.0189.4012:26
Oct 05
--2.3117630191.71272776Call Put
Dec'1291.8692.0589.3889.7912:26
Oct 05
--2.285232492.07234265Call Put
Jan'1392.3192.4189.8790.1512:26
Oct 05
--2.331710892.48118905Call Put
Feb'1392.6392.6990.2690.6812:26
Oct 05
--2.221149392.9071538Call Put

620M barrels on order in the front 3 months a LOT of open contracts, especially when you have this to look forward to:

Dec'1490.2490.3089.0589.0512:26
Oct 05
--1.45229190.5091043Call Put
Dec'1588.5088.5087.0087.0012:18
Oct 05
--1.4242788.4242319Call Put
Source: Why Oil Prices Are Low And Staying That Way

Additional disclosure: Positions as indicated but subject to change - we play oil in both directions, using the channel from $89.50 to $93.50 as a guide currently.