The facts about demand for crude staying strong in India, China, and the US are catching up to the market. So are concerns about unstable governments in Africa, the Middle East, and South America.
The percentage of oil staying within oil producing countries to build their own infrastructures is also being factored into prices.
According to Bloomberg "options to buy oil for $200 on the New York Mercantile Exchange rose 10-fold in the past two months to 5,533 contracts, a record increase for any similar period."
These bets are not being made by under-educated retail investors. They are being made by professional traders who see large profits in putting money down that oil hits $200 by year-end.
Macroeconomic trends favor the bet more each day.
Douglas A. McIntyre
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