RE:RE:RE:RE:I'm an optimist.lefmike wrote: Yes it could be those who bought earlier and are taking a loss, but better would be those who sold short and are covering... A lot of covering the previous two weeks and maybe a lot more the next month or so. Short out at 2-3.00 and buy back now... WOW lots of profit. Never played it but sure sounds interesting
That doesn't make sense. When you cover a short you are buying, that should push the price up. People are either shorting now, or more likely selling and taking a loss because of short term fear. I'm not aware of a single oil producer that can generate enough cash flow (without hedge) to maintain their current production under $40. So a long term oil price of $50 plus is inevitable, the current price will only make this happen quicker.