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World Series of Crude Oil: Winner Decides Winter Gasoline Prices

Oct 27, 2009 - 11:33 AM EDT

Bob van der Valk submits:

The two teams for the upcoming World Series of crude oil have been decided. The first team is made up of speculators and hedge fund advisors with the other team made up of the major and independent oil companies. The final outcome of this game between the Wall Street Titans and the Texas Oil Barons will decide the winner or loser, in this case the gasoline customer.

The big hedge-fund managers and other large speculators make up the Wall Street Titans and are betting on that the outcome will be that the price of crude oil price will increase to $85 a barrel by the end of this year. They have already increased their net-long position in New York crude-oil futures last week, according to Commodity Futures Trading Commission (CFTC).

Net long positions are bets that prices will rise and outnumbered short positions by 74,383 contracts on the New York Mercantile Exchange (NYMEX), an 8% increase over the week before. Crude oil is hovering around the $80 a barrel mark as of today.

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Source: Seeking Alpha (Oct 27, 2009 - 11:33 AM EDT)