DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Oil and gasoline prices falling today due to SPR decision

**CatLuvkaLover** · 06-23-2011, 06:56 PM

This is a perfect opportunity for a short squeeze, a highly inelastic commodity bid way up, put some downward pressure on the market, get a big block of shorts, and with any luck you could send oil limit down for a week.

Well, we sure have the perfect set up. If I was selling a position now at $91.40 per for WTI or $107.75 for Brent only to later fulfill the position later with a buy in the mid-low $80s for WTI or mid-low 90s for Brent then we are there. Perhaps watch it fall further. Since oil prices were headed down anyway, before this decision, that is exactly what is being set up today. Some may argue that in a way this may be looked at as a form of QE3, with Fed support (timing of his conversation sending prices down with the decision sending it down further), and with plenty of cash to be made along the ride. Why not short squeeze oil for at least August and September contracts? Or at least leave the option set up in a short position against another position dealing with even more stupidity coming from IEA down the road?

06-23-2011, 06:56 PM	#15
CatLuvkaLover Join Date Oct 2005 Posts 368 Senior Member	This is a perfect opportunity for a short squeeze, a highly inelastic commodity bid way up, put some downward pressure on the market, get a big block of shorts, and with any luck you could send oil limit down for a week. Well, we sure have the perfect set up. If I was selling a position now at $91.40 per for WTI or $107.75 for Brent only to later fulfill the position later with a buy in the mid-low $80s for WTI or mid-low 90s for Brent then we are there. Perhaps watch it fall further. Since oil prices were headed down anyway, before this decision, that is exactly what is being set up today. Some may argue that in a way this may be looked at as a form of QE3, with Fed support (timing of his conversation sending prices down with the decision sending it down further), and with plenty of cash to be made along the ride. Why not short squeeze oil for at least August and September contracts? Or at least leave the option set up in a short position against another position dealing with even more stupidity coming from IEA down the road?
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