Time To Short Oil?

Monday, October 12, 2009

Crude oil futures surged above $50 a barrel Wednesday as U.S oil inventories increased by less than expected.

Crude stockpiles rose by 1.7 million barrels in the week ended April 3, according to the U.S. Energy Information Administration, close to the average forecast of a 1.9 million-barrel build given by analysts in a Dow Jones survey.

Light, sweet crude for May delivery traded $1.50, or 3%, higher at $50.65 a barrel on the New York Mercantile Exchange, after trading as high as $51.10 a barrel.

Probably it is a good time to sell short July`s Nymex Crude Oil Futures at these levels (55.88 USD) and benefit from a correction in the oil prices and contango. If crude oil rises less than 10% till June/July you will be in the money. It looks like a nice deal.

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