Monday, July 04, 2005

We're not alone.

Bloomberg: Oil Traders Increase Bets for $80 Crude on Supply Concerns.


New York Mercantile Exchange data show 6,900 options contracts outstanding that allow the buyer to purchase crude oil for December delivery at $80 a barrel, compared with an average of 77 in January. The probability that oil will top $75 a barrel when the December crude contract expires is 21 percent, according to Adam Sieminski and Michael Lewis, strategists at Deutsche Bank AG, up from 5 percent at the start of the year.

I actually much prefer it when I'm not on board with the herd. Thankfully, this isn't a herd.