Oil Price

[letitfly]

On this week's Financial Sense podcast, John Kosar mentioned that he was skeptical about the price of oil due to the continued shorts by the 'smart money'. They have been short since $50 oil and continue to be short. He mentioned this happened years ago when oil was at $120. Your thoughts Dan?

[dan_s]

The global oil market is tight and getting tighter. Demand exceeds supply today. Global demand will spike in Q2 as it always does. If OPEC stays the course, I don't see anything that will push oil lower and a lot of things that can take it higher. If WTI stays over $60, my Sweet 16 valuations are very conservative.

Just remember that speculators set the oil price in the short term, but supply/demand fundamentals will win eventually.