Tuesday, 22 January 2008

Selling more Crude...love it

Doubling up my crude short, selling the March NYMEX contract at $86.49 in a bit over $40,000. A few reasons:

1) Oil was the biggest bubble commodity last year, rising even more than gold. It's payback time.
2) Despite everyone saying that it costs $40/$50/$60[insert number here] a barrel to produce, I reckon the Saudi's are still pulling it out the ground for less than 10 bucks a barrel. No evidence at all to back this up, just a hunch.
3) Loved this FT article the other day talking about Israel converting the whole country to electric cars, and requiring ZERO oil within 10 years!!
4) Just saw this BBC article pop up on my computer...'Huge' oil field found off Brazil.

So there's my reasons. I'm short about $95,000 worth now just below $87, I think we should be looking for $70 a barrel to start with.


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