Net spec longs in crude reach record high
By Peter Boockvar - January 15th, 2010, 4:06PM
According to the just reported CFTC data for the week ended Tuesday, the net speculative long position in crude rose to an all time record high dating back to 1990. It’s up 25% on the week and has doubled over the past 5 weeks. With the regulatory scrutiny in DC there may have been some reclassifications between commercial and non commercial traders so the comparison to historical data may not be apples to apples but the direction and degree of the longs are still worth noting.
De.li.cious
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January 16th, 2010 at 2:00 am
If the S&P corrects 5-7%, which it surely will soon, it’ll pull down oil with it; some of the speculative longs will get shaken out.
Nevertheless, I think crude oil will get to $150 within 2.5 years.
January 16th, 2010 at 11:08 am
Speculation in important commodities such as crude should be highly regulated lest our wonderful elites continue their immoral and corrupt raping of the sheeple. The current mechanics are not supply and demand in fair markets.
January 17th, 2010 at 1:46 pm
@alfred e
the production cost of oil for the producers on the margin is $50 a barrel. Oil at $80 is not a stretch. Additionally, the oil producers are net short. If there aren’t any speculators, who will take the other side of the trade for producers who want to get short?
the supply of cheap oil is finite. get used to the fact it is getting more expensive.