SUBSIM Radio Room Forums - Oil bubble may have burst

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SUBMAN1

08-08-08 11:45 AM

Oil bubble may have burst

http://www.telegraph.co.uk/opinion/m.../08/do0801.xml

Lets see if this holds true.

-S

Quote:

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

Quote:

Originally Posted by Type941

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

Quote:

Originally Posted by August

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

Quote:

Originally Posted by UnderseaLcpl

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

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