Why did Oil suddenly skyrocket?


not sure if this is “the” answer, but pickens came out and said 150 handle on oil is on the way ======================= Pickens says continued demand will drive oil back to $150-Bloomberg

Yea, wtf. I was wondering the same thing. It’s at $130. That’s almost $26/bbl in one day.

the Paulson plan to save the world

no more bank debt = shored up credit = better economy sooner = higher priced oil

Govt tax = lower USD = Higher Oil

Yeah but this JUST happened. It barely moved all morning. WTF?!

weakening dollar …

short squeeze. with the huge drop recently, a lot of people were betting we were going lower. As prices started creeping upward, some people were forced to cover their positions and it led to the huge flood of buying

I think its definitely the Paulson plan, but only insofar as the plan itself seems to be putting a lot of pressure on the greenback and will continue to do so for some time [i.e. US Dollar down relative to the Loonie and Euro]. Willy

short squeeze front month oct contract are up $21, but next serveral month are only up half of that.

BESPOKE is out saying it is a short squeeze http://bespokeinvest.typepad.com/bespoke/

short squeeze of a lifetime, is the long commodity/short $ /short anything that uses commodities for an input trade back on…

Boone T Pickens moves markets!!! lol. WTI Oil contracts expire on 21st each month (or close to it) IIRC. Brent crude is only up $6. Plus there was that chinese demand data that showed recovery post olympics.

Short squeeze is correct - today’s the last day of trading for the Oct/08 contract, and w/ the recent volatility there was a lot of shorting these past weeks; guys were biding their time until trading close (2:30pm EST) and had to close out positions prior to expiry (or else a lot of traders would be buying oil storage tanks for home use pretty quickly). Larger scope, definitely the paulson plan (printing money = inflation => enter crude as a safe haven).

crude as a safe haven good lord, what have we done to this world

No complaints from me since I work in O&G

Yeah - no complaints here; my condo’s value will end the year down 5% instead of 20%, if we can keep a $110+ handle.

weakening dollar + safe haven.

Short squeeze - physical settlement of the Oct contact - some commercials are short Also due to weak $. Check out Nov contract …up $5