Originally Posted by kenny

We've seen significant demand destruction in the $130+ range.

There can only be so much risk premium factored into a barrel of crude.

I wonder how many people out there placed wild bets at $130+ at a 5% margin hoping crude broke $150?

Do the math.

The minimum to buy is 1000bbl at a 5% margin.

130 x 1000 = $130,000

5% is $6500


so for $6500 you can control $130,000 worth of oil at $130 per bbl.

Oil goes up to $147 per bbl you make $17,000 off your $6500 investment.

Oil drops to $115 you've lost $15,000 plus $6500. At these are just the minimums!

There has to be a few pissed speculators out there.