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Texas Oil Maverick Turns Bearish

Texas Oil Maverick Turns Bearish

Inventories are rising for most refined products this spring. These high inventories are setting the stage for a major price decline. Speculators are finally pulling the trigger on one of the most lucrative commodity trades since 2002.

Recognizing the shift in consumption and rising inventories, Texas oil maverick, T. Boone Pickens, has turned bearish on oil in 2008. His hedge funds, which have earned a fortune for investors are now shorting oil.

Pickens’ funds were down 14% the first two months of this year, but are making a major comeback with their oil holdings. His funds just scored direct hits when crude slid from US$111 a barrel last week. Pickens believes large speculators are heavily long crude oil and in the absence of demand-side fundamentals are priming themselves for a major spill.

Mr. Pickens, by the way, is not alone betting against oil in 2008.

By tejasmarcos on 2008-03-26 13:15:36 in Off Topic.

tejasmarcos says on Wednesday March 26th, 2008 13:15:

time to short oil? where the shell is roci?

god is in your head

LDW says on Wednesday March 26th, 2008 22:23:

Commitment of traders report is interesting.

Commercials are going short, which means producers are hedging their positions...

Safest way for small investors to play this is to buy a put option......but even that is risky. The specualtor should be prepared to lose. He (she) should not be betting his last few dollars.

Here is the link.

http://www.nowandfutures.com/images/cot/CL.png

LDW says on Wednesday March 26th, 2008 22:24:

On the other hand, for natural gas....commercials are net long.....

meaning that large buyers of natural gas are hedging their positions.

Safest way for small investors to play this is to buy a call option......but even that is risky. The specualtor should be prepared to lose. He (she) should not be betting his last few dollars.

Here is the link for natural gas.

http://www.nowandfutures.com/images/cot/NG.png

goin_south says on Wednesday April 2nd, 2008 17:17:

well.. speaking of OIL.. lets talk IRAQ for a moment: latest in from an AP article on Msnbc today:

... "Critics in Congress are fuming. The U.S., they say, is getting suckered as the cost of the war exceeds half a trillion dollars — $10.3 billion a month, according to the Congressional Research Service."

Anyone wonder why there is talk of recession... why gas is $3 to $4 a gallon?

ISN'T IS ABOUT TIME FOR A GOIN_BACK TO THE ....""SIXTIES STYLE""... KICK-ASS DEMONSTRATIONS IN THE STREETS, AND UNIVERSITIES... I'D BE OUT THERE... SOMETIMES, AT THIS STAGE OF LIFE, YOU FIGURE.. MAYBE I OUGHTA BE THE NEW GENERATION JERRY REUBEN...

THANKS GWB... YOU'VE REALLY GOT THE WORLD SUCKING FOR BREATH.

NO MAS........ MARINERO YERRI'S... ;-(