GoldWize

Options Trader: Outlook for a Testy Tuesday

The trick here is, oil will eventually climb again. But, its going to
require the economy getting back on track. If they can't get the
banking crap sorted, you can expect to see gas drop back down to the
range of low 2 something a gallon before it climbs up again. China
can't build squat if the economy tanks. Fact is, OPEC shot themselves
in the foot when they let oil climb sky high which inevitably drives
up supply. The end result is that oil will be sitting at an
oversupplied rate over the next 2-3 years and opec will be caught in
the middle of trying to drive prices back up by reducing supply while
the US market increases supply through other means to keep prices
down. Ultimately they also sparked a revolutionary change in the
market place so that consumers focus on gas mileage instead of size
which reduces the demand.