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View Full Version : Oil bubble may have burst


SUBMAN1
08-08-08, 11:45 AM
http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/08/08/do0801.xml

Lets see if this holds true.

-S

Bad news from the Baku-Tbilisi-Ceyhan pipeline - an installation that may not normally draw much of your attention, but which is a throbbing artery of global energy supply, carrying vital oil supplies from Central Asia towards a tanker terminal on the Turkish coast. On some remote, sun-baked plain of Anatolia, an explosion sparked a fire earlier this week, temporarily cutting the flow through the pipeline.

But guess what? Here's the good news: the oil price did not zoom upwards in response, not a blip, barely a flicker. Actually the price of a barrel of crude has been falling: from a peak of $145 in early July, it came down to $117 and was trading yesterday at $120. That's almost a 20 per cent drop in little more than three weeks....

Type941
08-08-08, 03:47 PM
yeah, a friend of mine gone short on it at 135, he is VERY happy camper now. :)

all equitey houses have been saying this for a while, the OPEC said all along that it's a bubble and no need to raise demand, so it's not surprising. Timing wise actually in line with what I expected myself. good stuff.

SUBMAN1
08-08-08, 03:51 PM
yeah, a friend of mine gone short on it at 135, he is VERY happy camper now. :)

all equitey houses have been saying this for a while, the OPEC said all along that it's a bubble and no need to raise demand, so it's not surprising. Timing wise actually in line with what I expected myself. good stuff.How much did he make? What did he buy in at?

-S

Type941
08-09-08, 03:11 AM
at 135, so it's down to 115 now, which is quite good. In amounts? quite much, in 6 figures.

August
08-09-08, 09:41 AM
I must be misunderstanding this. He bought when it was at $135 and sold now that it's down to $115?

SUBMAN1
08-09-08, 09:44 AM
I must be misunderstanding this. He bought when it was at $135 and sold now that it's down to $115?Me too. I am not understanding!

-S

UnderseaLcpl
08-09-08, 09:57 AM
I'm assuming he bought at 135, waited until it peaked at, (what was it, 145 or 150?) and then sold just before it dropped.

Just a miscommunication.

SUBMAN1
08-09-08, 10:04 AM
I'm assuming he bought at 135, waited until it peaked at, (what was it, 145 or 150?) and then sold just before it dropped.

Just a miscommunication.Don't think so. There is also a way to make money on the fall of a stock, which is what I think he means by going in short.

-S