Oil is going to drop

Crude oil has advanced to around $100 these days following the Ukraine crisis but I don't think it is sustainable at this level and will very likely plunge in the next few weeks. The reason is quite similar to what happened last Sep. You can read that blog of mine to get a sense. Just this time, it is responding to the headline risk on Ukraine. There is another bearish indicator flashing: according to the "Commitment of Traders (COT)" report, traders are too bullish and have come to the extreme level to expect that oil will continue to rise. This is often the sign of a top and the precursor to a decline. If you are interested in putting money to oil companies, you better wait as you will get a much better price. If you are a risk taker, willing to speculate, then SCO is your bet to profit from the declining oil price.