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Short covering rally?

Posted on May 22, 2008

This last move in oil does have the feel of a short covering rally. If so, it will be interesting to see where it settles out when it's over. $110 would be my guess for a floor, but that's a long way down. That price still makes oil companies a lot of money.Bloomberg: Blame Wall Street for $135 Oil on Wrong-Way Betting.Quotes:Oil's rally to a record above $135 a barrel came as traders bought crude to cover wrong-way bets that prices would decline, according to data from the New York Mercantile Exchange.The number of outstanding futures contracts, known as open interest, fell 8.1 percent in ...

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crude , futures , new york mercantile exchange