Oil Finally Breaks Loose as Speculators Head for the Exits

In late January we noted on Jim Cramer's "Mad Money" the fact that speculators had amassed a historically aggressive long position in West Texas Intermediate (WTI) crude oil futures traded on the NYMEX division of the Chicago Mercantile Exchange. At the time we were favoring the idea of a long liquidation that would push prices into the mid-$40s and perhaps even the low $40s. However, roughly seven weeks later we are just now starting to see the cracks in what had been a multi-month trading range.

Although the move took much longer than we had anticipated, we still believe there is an overwhelming propensity for prices to slide sharply as speculators run for the exits. After all, the long positions were justified by traders based on decreasing supplies on the domestic front in addition to OPEC production cuts overseas. Now, however, we are seeing massive inventory builds in Cushing Oklahoma and many observers are questioning OPEC's dedication to its production targets in light of an aggressive shale oil operation in the U.S....594 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.