| We
believe that crude oil is due for a rebound rally to at least $55 per barrel
from its close of $51.21 on 1/16/07.
We believe this rally will occur within the next 8 weeks. The perfect
storm of extreme negative sentiment and depressed valuation is in place and
ready to uncoil. The market's
expectations of warmer weather and relative calm in the Middle East have
served to depress the price of Oil.
Any unexpected news in these areas will certainly add fuel to the
fire. Correspondingly, we have
entered a long position in USO at 43.93 on 1/17/07. |