Just wanted to raise the current spike in the price of oil as a potential trade that everyone should be either on or looking seriously at.
Obviously most, if not all, of you would be aware of the current situation in the middle east and the disruptions, both realised and potential, to oil supply that this poses. Since Monday the oil price has spiked from around $88ish to currently $98ish and could go much higher.
It was pointed out to me the other day however that on IEA (International Energy Agency) data for the last qtr of 2010, world oil supply was 88.2 mbpd (million barrels per day) whereas world oil demand was 88.9 mbpd. Forecast demand for 2011 is 89.1 mbdp with q3 and q4 demand peaking around 89.8 mbpd.
This being the case COMBINED with supply disruptions from the worlds main oil producing region could definitely see oil prices heading north towards 2008s highs of $150 and possibly beyond. As I and no doubt others watched this occur and did not take advantage of it, I am on board this time and thought I'd bring it up as a possible trade.