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Speculation about oil prices reaching $200 is increasing, according to Tom McClellan. He points out that many market participants are drawn to bold, round numbers, but emphasizes that commercial traders in crude oil futures—the so-called smart money—are currently betting against such a dramatic surge. McClellan suggests these traders tend to have a solid track record in anticipating major moves in oil prices.
These developments align with McClellan's broader perspectives on market behavior, including his observation that fund managers often postpone large trades until regular market sessions for optimal liquidity. Similar dynamics can be seen in his analysis of the persistent gap between inflation levels and the Federal Reserve's zero inflation mandate.