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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (91738)	12/18/2008 4:27:03 AM
From: Sea Otter	Read Replies (3) \| Respond to of 116555

OPEC is toothless. But: the oil markets won't yawn when Israel bombs Iran. At the risk of predicting the future (always a difficult enterprise) I suspect that a Middle East war may will be The Story of 2009, along with the concomitant explosion in oil prices.

To: mishedlo who wrote (91738)	12/18/2008 9:09:00 AM
From: ajtj99	Respond to of 116555

The big dump was primarily in the Jan contract for WTIC. The Feb contract only dropped $2.09 vs $3.54 for the Jan contract. quotes.ino.com Jan. 2010 oil closed at 57.27 yesterday, so if you can find storage space you can lock in $10/bbl profit by selling forward the Jan 2010 contract and storing oil. Either leap oil needs to drop, or front months need to. Oil may be reflecting currency dynamics here, with the future price of oil discounting weakness in the USD combined with a recovering global economy.