Don't look now: CL over $64 in electronic trading

[TonyM]

I was really unimpressed with crude's reaction to the Iranian deal, perhaps the speculators are now looking at that more seriously, whatever the reason the May CL contract is up by $1.19 as I type and has been as high as $64.41.

Inventory report tomorrow at 10:30 am est, keep an eye on this if $64 holds overnight.

[TonyM]

Looks like there was a false report that an Iranian war ship had fired on US forces that caused a temporary spike of $5. That spike hasn't registered as a high on the Nymex, so it likely wasn't tradeable, but now we know what to expect if hostilities do erupt...$5 in seconds...wow that could get ugly!

http://money.cnn.com/2007/03/27/markets/oil_spikes/index.htm?postversion=2007032718

[ronjeremy912]

Is it just me or does this 'false report' make you think of the Wall St Confidential video where Cramer talks about how to make Apple tank?

[TonyM]

Is it just me or does this 'false report' make you think of the Wall St Confidential video where Cramer talks about how to make Apple tank?

Not really, how would a hedge fund know of military actions in Iran and convey that to the AP, Reuters, etc? It would be interesting to know the source of the story though, I guess that whomever reported the story might be a freelancer that just burned some bridges, which certainly leaves the door open to speculation that the person in question could have been paid well to submit a false story. Although timing the story with US markets open would have been more profitable imo. It wouldn't surprise me to find it was intentional, but the timing should have been set to capitalize on the US markets, making it more likely to have been a mistake.