Veteran Oil Trader Says BUY

Saturday, October 10, 2009

Declines like these are opportunities to add to oil positions, says Eric Bolling, a former NYMEX commodity trader and host on Fox Business News.

While oil's midsummer rally overshot reality, its subsequent decline was similarly overdone, says the veteran oil trader Bolling, who believes oil should be in the 70 to 85 range.

The veteran trader and television commentator is currently long oil via the United States Oil ETF, which he says is the best ETF at handling the "roll" (contango) that occurs when crude futures contracts expire each month.

Bolling said he will add to the USO position if and when spot crude falls below 45 per barrel - which it approached earlier today - and is a long-term bull on the commodity because of geopolitical risks and the U.S. government's efforts to "reflate" the economy.

In the Oil Traders Blog you can find the best analysis and market commentary from the best oil traders in the world. Where is oil going to end 2009? Vote in the Retail Investor Poll.

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