Increase margin req's on OIL! -- now...

Quote from jaytrader100:

i Seriuosly doubt there is a shortage of sellers.... if you were an oil producing company an dyou were very concernd about the government stepping in to "srew up" the free moving oil market or if you were concerened about lower demand due to high prices..wouldn't yuo "hedge " by selling the oil contracts.. oil companies are selling hundreds of thousands of barrels of oil short..... commercials end users .. are buying thousands long and thus the hedge happens.... if you sold 100,000 oil contracts today it would drop the market some..but Goldman would most likely step in and buy most of em or an airline or trucking company... this is how the market works... I think at these levels almost all of your producers are going to hedge by selling contracts to lock in this hihg price for years to come... but that doesn't mean the price drops... there is also a buyer fior every seller in the futures.. it si a price match.
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Dude, are you typing this while wearing a catcher's mitt?
 
Quote from ByLoSellHi:

Look at what India's legislators were able to do with curbs on margin in rice futures trading:

A nearly instant 40% drop in rice prices.


Now, do not misunderstand - I am a free market proponent.

However, when you have:

I think intelligent people can draw a clear line here and stake a very rational case for governmental intervention.

Bring oil close to its natural supply/demand price of $40 to $50 per barrel and watch inflationary pressures ease substantially, the consumer get a massive psychological boost, and equity markets soar (not to mention the massive shrinking of the U.S. trade imbalance, immediate relief for every major U.S. industry, and...well, I could go on and on, but you get the picture).
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India took action because the alternative is riots in the streets, followed by uncontrollable massive public actions and resultant slaughters by troops trying to reeestablish control.

Tienenmen Square in China had the same, even under a communist system, the natural reation publically occurred.

The Bolsheviks either lost or came to power, I forget, because of massive public outrage.

Our system is based on more (supposedly and on the surface) rationale thought, debate and public consensus and through relatively passive election and electoral processes. The net result is a change, a change in those in control and those overseeing things and those enforcing regulations already in place.

Change is always good, however,

what India did was take action.

Action is just what these lame conservatives refuse to take and as of today, Wed, May 21st, we have public traded WTI (west texas intermediate) oil peaking above $133 bbl/US.

Change,,,,,

Action,,,,,

Price control,,,,

or the logical opposite, just look at the previously mentioned examples......
 
Quote from Trader KGB:

One thing I don't quite follow about this blame the speculators mantra is, if prices are overinflated due to specs, why doesn't price negatively react at expiration when the specs exit the current month? Since the specs are all rolling over their positions en masse, shouldn't the front month contract sell off precipitously as it heads into expiration? (assuming the spec-naysayers are correct that specs are adding x dollars to the price of crude)

The June contract expired today, and it closed at a new all-time high. So whoever took delivery was more than willing to pay current market prices. Those weren't the specs buying the June contract into the close/expiration today..
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good question,

manipulation rarely ever uses just one hand to work through,

sophisticated game they're playing,,,,

must have Executive level power brokers in very high places supporting their actions (read: Oil Administration, not necessarily the same thing as the Bush II Administration, but who cares anymore)
 
Quote from Trader KGB:

A good read for all those interested. This sheds further light on the subject, especially with regards to the effects of speculators via the 'swaps loophole'.


Congressional testimony of Michael W. Masters
Portfolio Manager
Masters Capital Management, LLC

Committee on Homeland Security and Governmental Affairs
United States Senate

May 20, 2008

http://hsgac.senate.gov/public/_files/052008Masters.pdf
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Yes, Mr. Masters offers $265 BILLION reasons as to why speculation has fueled part of the price rise in crude oil.

An interesting read.
 
Quote from Trader KGB:

A good read for all those interested. This sheds further light on the subject, especially with regards to the effects of speculators via the 'swaps loophole'.


Congressional testimony of Michael W. Masters
Portfolio Manager
Masters Capital Management, LLC

Committee on Homeland Security and Governmental Affairs
United States Senate

May 20, 2008

http://hsgac.senate.gov/public/_files/052008Masters.pdf
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gotsta secure dat bonus!
 
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