OpenBook Traders Optimistic of Oil Price Rise
(eToro Blog) Offsetting concerns are making for some volatility in oil prices, with WTI selling earlier for $106.33 per barrel, a multi-months high. Tensions continue to ratchet up in Iran, the 2nd largest oil producer in the Middle East, with United Nations’ inspectors declaring their attempt to visit Iran’s nuclear installation a failure. One analyst specializing in oil doesn’t see prices coming down any time soon, especially given the worry that Iran will attempt to block the Strait of Hormuz, a key distribution channel. On OpenBook, oil traders are generally bullish. OpenBook commodities trader mmf919, who has 55 followers and 7 copiers, closed out several long positions earlier with gains of 12.27% and 11.36%, has one open long ready to hit the break-even point and another order to buy if the price should hit 106.10.
Trader amanda45 has a relatively small allocation to oil, only 8.5% of the portfolio over the past month, but that allocation has provided an 11.3% return. Three recently opened long positions with an optimistic TP of 117.29 suggest that this Australian trader expects either political tensions or demand could markedly increase. Another Aussie trader, SithLord, is also expecting prices to rise, and yesterday closed out a handful of long positions when the trader’s TP was struck, with an average gain of nearly 29%. This trader is on track to post a 29% return for the week.
The U.S. has pushed for sanctions against Iran in light of their nuclear program, and China, India and Japan are all on board to reduce their reliance on Iranian imports but demand will continue to remain strong, especially from Japan which is still trying to restore earthquake-demolished infrastructure. Worries about possible shortages and high gas prices for the world’s largest oil consumer, the U.S., are already being addressed with some lawmakers urging the President to prepare a strategy which would include drawing on the U.S. stockpiles.
Copyright 2012 eToro BlogNote: Past performance is not an indication of future results. This post is not investment advice. CFD trading bears risk to your capital.