Crude Oil Prices - October 16

[dan_s]

I think we started seeing short covering today. There are still a bunch of November NYMEX contracts sold short by traders. They must cover their shorts before the contract expires or they must deliver oil to Cushing, OK. I think the November contract expires on 10/24. Next week could be quite interesting.

Any ray of positive economy news can start a big short covering rally.

An early cold wave that increases heating oil demand can kill the shorts with December or January contracts.