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2011-08-19 Economy
Oil futures speculators get panties in wad over being exposed as scum
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Posted by Anguper Hupomosing9418 2011-08-19 13:28|| || Front Page|| [11128 views ]  Top

#1 It'll just move all the trades off-shore. Somebody somewhere will offer a better deal for confidentiality.
Posted by Steve White 2011-08-19 14:55||   2011-08-19 14:55|| Front Page Top

#2 This is the usual blame the speculators nonsense from the economic illiterates.

Amongst other things, Speculators prevent physical shortages.
Posted by phil_b 2011-08-19 15:11||   2011-08-19 15:11|| Front Page Top

#3 However, members of Congress are not prohibited in any way from releasing information they obtain from CFTC in their course of their investigations.

No more than classified defense or security information sent to their favorite media outlet. Remember one man's source is just another special interest group's leak. Heh.
Posted by Procopius2k 2011-08-19 15:41||   2011-08-19 15:41|| Front Page Top

#4 Also note that futures speculation only matters in the spot market. The vast majority of oil is handled in enormous, fixed contracts with the major players, thus is significantly cheaper than the spot market, which only comes into play for those who aren't major players, or when the major players underestimate their needs. Which is why the major players spend so much time figuring out their needs to the barrel. And from there, the crude goes to the refineries who have taken fortune telling to a fine art, to figure out exactly how much gasoline, HHO, airplane fuel, etc. they are going to have to retool for.
Posted by Anonymoose 2011-08-19 15:57||   2011-08-19 15:57|| Front Page Top

#5 I would like to read explanations for the petro price bubble of 2008, from those who don't think speculation was the problem. Whatever it was, it sure as hell wasn't due to 'supply and demand.' "Drill everywhere" will not help government sponsored price manipulation.
The comparison of releasing this type of information to the release of security/defense info is absurd.
Posted by Anguper Hupomosing9418 2011-08-19 16:07||   2011-08-19 16:07|| Front Page Top

#6 This is the usual blame the speculators nonsense from the economic illiterates. If so, why are the pigs squealing? Who benefits from Goldman Squid pushing & pulling money out of commodities? The regulation of commodities markets did not originate in a socialist plot.
Posted by Anguper Hupomosing9418 2011-08-19 16:09||   2011-08-19 16:09|| Front Page Top

#7 IIRC, the price of petro paid by common consumers is determined by the 'spot price.' This does matter to a few million of us. Educate me if I'm wrong on this. Explain the 2008 petro price bubble.
Posted by Anguper Hupomosing9418 2011-08-19 16:11||   2011-08-19 16:11|| Front Page Top

#8 It was mostly OPEC market manipulation.

Wikipedia has more
Posted by phil_b 2011-08-19 16:58||   2011-08-19 16:58|| Front Page Top

#9 The problem with oil/petrol is that supply and demand (absent OPEC manipulation) are relatively inelastic.

What this means is it is hard to increase supply and people keep buying petrol even when the price goes up.

So, in order to bring supply and demand into balance, prices spike up as they did in 2008.
Posted by phil_b 2011-08-19 17:10||   2011-08-19 17:10|| Front Page Top

#10 It seems like people such as Sanders and Soros are quoted a lot declaiming the evil 2008 oil speculators.

I almost always prefer to be on the opposite side of the fence from the commies.

Question: what caused the 2008 bubble to burst? It wasn't around for long...
Question 2: Should I care overmuch? The current oil prices are not speculative at all- it's the 'Arab Spring' or whatever you call it...
Posted by Free Radical 2011-08-19 18:04||   2011-08-19 18:04|| Front Page Top

#11 The 2008 collapse of the bubble matches too closely to the freeze of bank liquidity that prompted the panic that generated TARP. Had the agencies and institutions call margin as soon as the price hit 100, it would have had a similar effect. Instead we had to wait till the banking/investment system almost came to a full halt to watch it pop. When they couldn't get backing, gambling with other people's money, the game ended.
Posted by Procopius2k 2011-08-19 18:50||   2011-08-19 18:50|| Front Page Top

#12 > I would like to read explanations for the petro price bubble of 2008

A Simple Credit Bubble.
Posted by Bright Pebbles 2011-08-19 19:52||   2011-08-19 19:52|| Front Page Top

#13 
This is the usual blame the speculators nonsense from the economic illiterates.


Thus Bernie "Marx" Sanders being the lead whiner.
Posted by Rob Crawford 2011-08-19 20:45||   2011-08-19 20:45|| Front Page Top

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