Wednesday, March 02, 2011

CNBC R-Spot (cnbc's rolodex spot price for west texas crude)

Whichever producer(s) over at CNBC mining the wires and inviting guests to suggest where the price of crude oil should be headed are on quite a roll lately. But I'm not sure they know how good they are.

I'm calling this CNBC's Rolodex Spot price for Crude, or CNBC R-Spot...

Thursday 24 Feb:
-WTI Spot price has topped $100/barrel - posts high of $103.41
-CNBC runs call for $220/barrel, multiple times throughout session (Oil could hit $220 a barrel if Libya and Algeria were to halt oil production together, analysts at Nomura investment bank predicted.)
[SELL $220 CNBC R-Spot; WTI = $102 - $103]
-Exchanges hike margin requirements for crude oil futures after volatility increases
-WTI Spot price drops dramatically late-session, to low of ~98.20, coincident to rumor Gadhafi shot
-After-hours electronic session sees WTI low of 95.62

Friday, 25 Feb:
-Saudi's promise to increase production to stem issue of retarded Libyan supply
-WTI Spot ranges from 96.17 early low to 99.20 late high; closes week out at 98.23
-CNBC runs morning analyst call for $70; switches to alternate call of $60 call later session.
[BUY CNBC R-Spot $70 and $60; WTI = $97 and $98]

Wednesday, 2 Mar:
-WTI Spot trades to early low 99.21 to a high of 102.50
-CNBC talking oil non-stop all session; today's reported price target: $130 (Libya's supply disruptions to world markets could push oil above $130 in the next month if troubles persist)
[REDUCE CNBC R-Spot $130; WTI = $102]
-CNBC's Fast Money program after hours sports a unified theory that strength of the Oil and Energy markets are only going to take prices higher
[SELL CNBC R-Spot "only higher" WTI=102.50]

CNBC R-Spot price currently stands at $130/barrel. I like selling here or higher [the fictional price] and I like buying $85 and lower (Note: $84 is about where we actually came from, and is where some Rolodex experts fashion it should trade back to with resolution in Libya).

Easy game.

Follow @Centrifugal to fade trades in real time

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