This Just In... Oil Prices Are Volatile
Wednesday May 7, 2008
Every day when I open the paper there is an article like this: Some See Oil At $150 a Barrel This Year:
More: Will Oil Hit $135 a Barrel In 2008?
Oil's seemingly unstoppable surge has led some analysts to issue gloomier price outlooks. Goldman Sachs Group Inc., which predicted the latest run-up, says the world may face a "super-spike" in which crude ranges from $150 to $200 a barrel as early as October, up from just over $120 now.A 21% movement in oil prices over a 6-month period would not be unusual, in either direction. But I suspect we won't be seeing any articles predicting a 21% price drop any time soon. Given that all the convential wisdom seems to be saying that oil is unstoppsable upward trend, I am almost tempted to start buying put options.
More: Will Oil Hit $135 a Barrel In 2008?
Comments
All those who predict oil will hit $200 a barrel why don’t they buy 5000 barrels of crude oil futures. Its one thing to say oil will hit $200 a barrel and another to gamble with your money and potentially lose a lot of money if you are wrong. I totally agree with you that this price should be reflected in oil futures.