The reason prices are rising is to slow demand. In the United States, demand is already down 3-4%
Tampa, FL (PRWEB) June 18, 2008
OptionSellers.com founder James Cordier was frank with Fox Television's Neil Cavuto Monday night on Cavuto's evening show. When asked his target for crude oil prices in 2008, Cordier replied "We see it coming down to 110 (dollars per barrel) by the end of the year."
Cordier, a portfolio manager with Liberty Trading Group in Tampa, has attracted national media attention for his fundamentally based but often contrarian views on the commodities markets. His unconventional approach to investing by selling options has made him a popular guest for US media outlets. His book, The Complete Guide to Option Selling (McGraw-Hill 2005) is a favorite among the alternative investment crowd.
Crude Oil prices spiked to an all time high on Friday of $139.12 per barrel based largely on dollar weakness and Israeli comments that were viewed as hawkish towards Iran. Although bullish on crude for most of the year, Cordier feels the recent price spike is finally pushing crude to price levels where demand is beginning to wane. "We think actually the demand level is about to crack" said Cordier. "The reason prices are rising is to slow demand. In the United States, demand is already down 3-4%," he added.
Although he projected lower prices, Cordier did not suggest that oil prices were about to collapse, nor did he deny the longer term fundamentals supporting prices. "We think that supplies worldwide have peaked out," he said, adding that prices could still advance to the $140-$145 per barrel range before declining later in the year.
Cordier appeared on the show with TD Ameritrade CEO Joe Moglia and Congressman Bart Stupak (D) Michigan who suggested that spiraling oil prices were the fault of market speculators. The theory was questioned by Cavuto and Cordier. "I think it is fundamentally justified at exactly the price it is" Cordier stated.
For additional information on James Cordier or his firm Liberty Trading Group/OptionSellers.com, contact Liberty Trading Group, 813-472-5760 or visit http://www.OptionSellers.com.