Buy Oil...????

I woke up and saw this headline:

"OPEC Plans Supply Cut as Crude Oil Heads Toward $50"
Wasn't it the other day when we thought oil was going to $200.
Completely reversed now. This headline is fear induced. And it also shows...that OPEC of the headlines have no clue or it appears no control over the price of crude.

Reading the text of the article by Grant Smith and Margot Habiby

Oct. 20 (Bloomberg) -- OPEC, the supplier of more than 40 percent of the world's oil, plans to cut output for the first time in almost two years (If they have so much control as the headlines touted for the past couple of years how come it crashed so suddenly?) as the worst financial crisis since the 1930s (the other day the market had no downside) sends crude toward $50 a barrel.

Options contracts to sell oil at $50 by December soared 50- fold in the past two weeks on the New York Mercantile Exchange. Goldman Sachs Group Inc. and Merrill Lynch & Co. analysts say crude, which fell more than 50 percent from a record high in July to a 14-month low last week, may drop another 44 percent should the world economy slip into a recession.

What we haven't slid into a recession, yet we are experiencing the worst financial crisis since the 30s? I'm confused. I guess that type of analysis is what caused Merrill to be bought out and sounds more like a government controlled Goldman than an independent one.

Who in their right mind is paying $500 dollars for option 50% out of the money. Where were they from 140, 120,105,90,80???? I'd say this article, OPEC, options buyers are late to the party.

Now I was two days delayed when the top fell out of bed in oil. The reverse could be happening now.

But I don't know if it will retest old highs but I believe the price of oil will stay range bound.