Quote from rubibond007:
Everybody is right in this thread.
Oil is a global commodity and is a Physical commodity. weak dollar accounts for about a third of the recent record run in oil prices, another third on geopolitical uncertainty and the rest on supply/demand and market speculation.
The NYmex made a deal last month with the The London Clearing House Limited and Clearnet.
NYMEX and LCH.Clearnet Announce Historic Clearing Alliance.
Futures and derivatives clearing house LCH.Clearnet Ltd will clear a range of NYMEX over-the-counter and futures products under an agreement with NYMEX Holdings (NMX.N: Quote, Profile, Research) unveiled on Thursday.
NYMEX, the parent of the New York Mercantile Exchange, will offer oil contracts, including West Texas Intermediate, Brent and gasoil as well as natural gas and electricity contracts for clearing through LCH.Clearnet, the two groups said in a statement.
The contracts are expected to begin trading and clearing in mid-2008, pending regulatory approval. They will be listed for trading on the CME Globex electronic trading system and the NYMEX ClearPort.
The alliance will save users money via margin and other capital efficiencies as well as give them the ability to trade virtually 24 hours a day, Richard Schaeffer, NYMEX chairman said in the statement.
NYMEX offers futures and options trading in energy, metals and soft commodities.
LCH.Clearnet is owned jointly by users, exchanges and also Euroclear, a settlement system for domestic and international securities transactions.
LCH.Clearnet serves international exchanges, markets in equities, exchange traded derivatives, energy, the interbank interest rate swaps markets and certain euro and sterling bond markets.
NYMEX is currently in talks with CME Group Inc (CME.N: Quote, Profile, Research), the world's largest derivatives exchange, on the CME's potential acquisition of NYMEX.
