With headlines like $220 OIL floating around, everyone’s bullish on oil again. But just remember something. A few days ago, oil was 15% below where it is now. If, somehow, the Libya situation quiets — a huge “if” obviously — then there’s a pretty big air pocket potentially facing anyone who’s long.
Here’s a chart to remind you of where we were right before everything went nuts in Libya:
And if you don’t believe that, from a fundamentals standpoint, industrial commodities are looking ugly, here’s copper: